Dealing with zero values

[Stefanos Papanastasiou]

Hello,
I am working on the effect of social transfers (pensions and other social benefits) on middle income class by employing EU-SILC. My question is how can I effectively handle a lot of zero values on the respective indicators.
Thank you,
Stefanos

[Carlo Lazzaro]

Stefanos:
welcome to this forum.
The short and trivial reply is: it depends on what those zeros are expected to mean in your dataset.

[Stefanos Papanastasiou]

Dear Carlo, they simply mean that certain observations did not receive any sort of social transfer. So, they are out of the scope of my analysis. But then again ruling them out leaves the database with an inadequate N. Any contribution most welcome. Thanks. Stefanos

[Carlo Lazzaro]

Stefanos:
you might be interersted in the following, recent thread: https://www.statalist.org/forums/for...ing-with-zeros.