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creating wealth index using house characteristics and household assets

This question was posted the Assessment and Surveillance forum area and has 2 replies.

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Helena Ben

Normal user

12 Oct 2019, 06:31

Dear colleagues,

How do I create the wealth index (preferrably in tertiles - low, middle and high) using PCA? I am using the SAS program. I would appreciate all the help I can get. Thank you.  

Bradley A. Woodruff

Self-employed

Technical expert

14 Oct 2019, 15:09

Dear Ms. Ben:

There are many references available on the web regarding the calculation of the wealth index as used by DHS and the World Bank.  I have found "Steps to constructing the new DHS Wealth Index" by Shea O. Rutstein to be of the greatest practical usefulness.  Although it gives programming examples only in SPSS, the explanation provides sufficient detail to be able to use any statistics program.  You can find this document at: https://dhsprogram.com/programming/wealth%20index/Steps_to_constructing_the_new_DHS_Wealth_Index.pdf.

Philip McKinney

Consultant (Food & Nutrition Information Systems)

Normal user

14 Oct 2019, 15:13

Dear Helena

I'm not sure if it's the software you need help with (see here) or the wealth index (see here) you're needing some help with. Whilst I'm not very familiar with SAS I've run a few PCA wealth index analysis before and it's not super straightforward (particularly if you haven't used the standard indicators). I would be happy to chat through the non-SAS related issues with you.

Phil

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