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help for drdecomp                                            Joao Pedro Azevedo
Andres Castanedas
Viviane Sanfelice
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Shapley value of growth and distribution components of on changes in poverty in
> dicators

drdecomp welfarevar [weight] [if exp] [in exp], by(varname)
varpl(varlist) [ indicator(string) mpl(numlist) ]

fweights and aweights are allowed; see help weights. See help weight.

Description

drdecomp implements the shapley value of the Datt and Ravallion (1992)
decomposition of changes in a welfare indicator into growth and
distribution, however, following the shapley and non parametric
methodology suggested by Shorrocks (1999/2012) and Kolenikov and
Shorrocks (2003).

For examples of applications please see Azevedo and Sanfelice (2012) and
Ferreira et al (2012).

Where

welfarevar is the welfare aggregate variable.

by is the comparison indicator. It must take two categorical values and
is usually defines two points in time or two geographic locations, which
the difference of the indicator of choice is being decomposed.

varpl(varname) poverty line variable.

Options

indicator(string) poverty indicators. fgt0, fgt1, fgt2 are the currently
supported options. fgt0 is the indicator default.

mpl(numlist) allow to calculate the poverty indicators by range using
multiples of the poverty line.

Saved Results

drdecomp returns results in r() format.
By typing return list, the following results are reported:

Matrices
r(b)                average effect of the two factors and the total
change on the poverty indicator.
r(shapley)          besides the average effect, returns the
contribution for the two paths.
r(poverty)           returns the value of the indicator by categorical
value of by.

Obs: On the reported matrices
Indicator label: 0 - FGT(0); 1 - FGT(1); 2 - FGT(2).
Effect label: 1 represents the growth; 2 redistribtuion and 3 the total
change on the indicator.
Line label (if mpl specified): 1 represents the first multiple; 2 the
second, and so on. The last indicates the range from the last multiple
and the maximun value.

Examples

. drdecomp percapitainc, by(year) varpl(pline)

. drdecomp percapitainc, by(year) varpl(pline) in(fgt0 fgt1 fgt2)

. drdecomp percapitainc, by(year) varpl(pline) mpl(1 3.5 6)

(click to run the example below)

. use exdata_drdecomp, clear

. drdecomp income [w=weight], by(year) varpl(lp_4usd_ppp) ///
. in(fgt0 fgt1 fgt2)

References

Azevedo, Joao Pedro and Viviane Sanfelice (2012) "The rise of the middle
class in Latin America". World Bank (mimeo).

Ferreira, Francisco H.G.; Messina, Julian; Rigolini, Jamele; López-Calva,
Luis-Felipe; Lugo, Maria Ana; Vakis, Renos. (2013) Economic Mobility and
the Rise of the Latin American Middle Class. Washington, DC: World Bank.

Datt, G.; Ravallion, M. (1992) Growth and Redistribution Components of
Changes in Poverty Measures: A Decomposition with Applications to Brazil
and India in the 1980s. Journal of Development Economics, 38: 275-296.

Shorrocks, A. F. (2012) Decomposition procedures for distributional
analysis: a unified framework based on the Shapley value. Journal of
Economic Inequality.

Shorrocks, A.; Kolenikov, S. (2003) A Decomposition Analysis of Regional
Poverty in Russia, Discussion Paper No. 2003/74 United Nations
University.

World Bank (2011) On The Edge Of Uncertainty: Poverty Reduction in Latin
America and the Caribbean during the Great Recession and Beyond. LAC
Poverty and Labor Brief. World Bank: Washington DC.   (link to
publication)

Authors

Joao Pedro Azevedo, jazevedo@worldbank.org
Andres Castanedas, acastanedaa@worldbank.org
Viviane Sanfelice, vsanfelice@worldbank.org

Acknowledgements

This program was developed by the  LAC Team for Statistical Development
(2012), in the Latin American and Caribbean Poverty Reduction and
Economic Managment Group of the World Bank.

Also see

Online:  help for gidecomposition; apoverty; ainequal; wbopendata; adecomp;
mpovline; skdecomp (if installed)

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