McDonald and*Moffit's*decomposition

[Teresa Mungazi]

Hi,

I have McDonald and Moffit decomposition calculation below but would like to know what's what, and what do I substitute for with my data.

Below we calculate McDonald and Moffit's decomposition. */

gen one=1
mkmat whrs, matrix(y)
mkmat one, matrix(ones)
mkmat one kl6 k618 wa we, matrix(X)
matrix Xb=inv(ones'*ones)*ones'*X
matrix b = e(b)
matrix beta = b[1,5],b[1,1], b[1,2],b[1,3],b[1,4]
matrix BXoverS=Xb * beta'/b[1,6]
scalar Z=el(BXoverS,1,1)
scalar Mu=normalden(Z)/normal(Z)
scalar P=normal(Z)
scalar P1=P*(1-Z*Mu-Mu^2)
scalar P2=normalden(Z*Z+normalden(Z)*Mu)
display Mu
display P
display P1
display P2

I hope someone can assist.