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Should I normalize data? [message #5593] Sun, 14 June 2015 00:23 Go to previous message
mermac is currently offline  mermac
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Registered: June 2015
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I am working in the construction of a wealth index following the Steps proposed by Rutstein. After reading Filmer & Pritchett and other literature it is not clear for me if I should normalize the variables. I will be using STATA PCA command.
I already created a dummy variable for each category. Should I then normalize the variables? or run the pca right away?

Thanks!
 
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