Good morning,
I am interested in calculating the potential differences in the gini index for networth before and after an increase in inflation.
For that, I have my original networth values and then I create a new variable considering an increase in inflation of +10% (I do this by dividing my original variable by 1.10). I get the new variables in which I can clearly see that those who had a negative networth now have a higher value (they improve), but those who what a positive networth get now lower values (worse situation). Thus, I expect to calculate the Gini and obtain that it has decreased since all the values get closer after the increase in inflation. However, when I compute inequal7 for the original variable and the new one, I get the same Gini Index (and the other measures too) for both variables! Stata is supposed to use negative values (it states...has 511 values < 0 *used* in calculations) so I don't understand the issue.
If anyone has experience with this problem or knows the answer please I would really appreciate your help.
Thanks a lot,
Nerea.
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