The Norm of Absolute Values (NAV) index for panel data

[Caliph omar]

I am trying to measuring structural change, the Norm of Absolute Values (NAV) which is sometimes also called Michaely-Index (Michaely (1962)) or Stoikov-Index (Stoikov (1966)). for Panel data. This index is an alternative measure for Lilien and modified Lilien index.




NAV = 0.5*sum(Abs(Xi,t - Xi,s)). , i =sector, t and s time points.

More about the index pls see page 12 of this paper
https://pdfs.semanticscholar.org/1d7...426ffac75c.pdf






I would appreciate if anyone could help me



Kind Regards,




Caliph Moumin

[Caliph omar]

I tried this way, but i think something is wrong, because i was expecting a value between zero and unity.

. foreach var of varlist agri_valueadded manu_valueadded ser_valueaaded {
. bysort country: gen D`var' = 0.5*(sum(abs( D.`var' )))
. }
Thank you in advance