(online) The Stata Journal (yyyy) vv, Number ii

Martina Menon, Federico Perali, Nicola Tommasi, Martina Menon, Federico Perali, Nicola Tommasi
2016 unpublished
This paper presents the Stata command pseudounit that estimates Pseudo Unit Values in cross-sections of household expenditure surveys without quantity information. Household surveys traditionally record expenditure information only. The lack of information about quantities purchased precludes the possibility of deriving household specific unit values. We use a theoretical result developed by Lewbel (1989) to construct "pseudo" unit values by first reproducing cross-sectional price variation,
more » ... price variation, and then adding this variability to the aggregate price indexes published by national statistical institutes. We illustrate the method with an example that uses a time-series of cross-sections of Italian household budgets .