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Re: Constructing indexes using Principal Component Analysis/Factor Analysis [message #4285 is a reply to message #4281] Thu, 30 April 2015 18:34 Go to previous message
user-rhs is currently offline  user-rhs
Messages: 132
Registered: December 2013
Senior Member
Robert, the DHS program has extensive documentation on how the wealth index is constructed. Read the general comparative report (link here: http://www.dhsprogram.com/publications/publication-cr6-compa rative-reports.cfm).

Variables used for specific countries and survey years can be found here:
http://www.dhsprogram.com/topics/wealth-index/Wealth-Index-C onstruction.cfm

There's a document by Shea Rutstein with the steps on creating the wealth index on that page, including some code in CSPro. My colleagues and I have used it before to guide us in creating a wealth index on some primary data that we collected. The "translation" to Stata is fairly straightforward.
 
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