I am trying to convert the following formula to STATA code, but I could not.
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The FFC is based on the mean of the cubed absolute difference between the oopctp a given household and the oopctp norm. oopctp is Out-of-pocket health payments share of household capacity to pay (oopctp)
My code is:
Code:
gen oopctp = OOP/ctp bysort year city state: egen oopctpW = mean(oopctp) label variable oopctp "OOP share of household capacity to pay"
Code:
gen aux = weight*(abs(oopctp - oopctpW)^3)
Code:
gen aux1 = (aux/weight)^(1/3)
Code:
gen FFC = 1 - aux1
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