Weighted Average of Interest Rates & other related issues

[Jia De Gedeon Lim]

Hey Ajay and Raj,

This is pertaining to my question yesterday about recoding interest rates as 0 if HHs reported having no loans outstanding at the beginning of the RP (vliabilities) but being charged positive interest rates. "dateltaken" here refers to the date that HH took out the loan. 1=during RP and 79 etc refers to actual calender years.

E.g. for id1982=1, if HH said they took out a loan during RP but "vliabilities" =0 while vintrate=125, is this interest rate still of interest to us? I'm unsure of this because from what I've seen in the solowHH_dataprep file, we are interested in liabilities as the amount outstanding at the beginning of RP. Thus, in the same turn, are we interested in interest rates on loans that were taken before and/or after the RP?

Thanks.

Best,
Gedeon

[Ajay Shenoy]

How often does that happen?  Is it rare enough to be a data entry error?

-@

[Jia De Gedeon Lim]

Hi Ajay,

Sorry for the mistake. I suspected that some of these interest rates could have been charged for loans taken during the RP itself as vliabilities refers to amount of liabilities outstanding at the beginning of the RP. Indeed, I checked and there are only 2 observations for which the problem still persists after accounting for loans HHs took during the RP. I think these 2 obs could be the result of data entry errors.

Thanks and sorry for troubling you.
-Gedeon