help descogini                                 (SJ7-4: st0100_1; SJ6-1: st0100)
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Title

    descogini -- Gini decomposition by income source


Syntax

        descogini varlist [if] [in] [, d(#) bar]


Description

    This command decomposes the Gini coefficient by income source using the
    approach described in Lerman and Yitzhaki (1985) and Stark, Taylor and
    Yitzhaki (1986), which allows calculation of the impact that a marginal
    change in a particular income source will have on inequality.


Options

    d(#) specifies the number of decimal places to be reported in the table
        of results. The default is d(4).

    bar specifies that a vertical bar should be included before each output
        field. Such output can be pasted into Microsoft Word as text and
        converted into a table using the vertical bars as separators.


Remarks

    The first variable in varlist should always be the variable that captures
    total income. The order in which the income sources are included in the
    syntax does not matter.

    The last column of the table of results (% Change) refers to the impact
    that a 1% change in the respective income source will have on inequality.
    Four additional elements are included in the table of results: the share
    of each income source in total income (Sk), the source Gini (Gk), the
    Gini correlation of income from source k with the distribution of total
    income (Rk), and the share of each income source in total inequality.
 
    Bootstrapped standard errors of the estimated impacts on inequality can
    easily be obtained using this command (see examples below).
 

Examples

        . descogini totinc farminc ofarminc transinc

        . descogini totinc farminc ofarminc transinc, d(5)

    To obtain bootstrapped standard errors and confidence intervals:

        . bootstrap "descogini totinc farminc ofarminc transinc" _b

        . bootstrap "descogini totinc farminc ofarminc transinc" _b
            Gini=gtotal


Author

    Alejandro Lopez-Feldman
    Escuela de Economia
    Universidad de Guanajuato
    Email:  lopezfeldman@gmail.com


Citation

    descogini is not an official Stata command. It is a free contribution to
    the research community, like a paper. Please cite the Lopez-Feldman
    (2006) paper.


References

    Lerman, R.I. and S. Yitzhaki. 1985. Income inequality effects by income
        source: A new approach and applications to the United States.  Review
        of Economics and Statistics 67: 151-156.

    Lopez-Feldman, A. 2006.  Decomposing inequality and obtaining marginal
        effects.  The Stata Journal 6(1): 106-111.

    Stark, O., J.E. Taylor and S. Yitzhaki. 1986. Remittances and inequality.
        Economic Journal 96: 722-740.


Also see

    Online: inequal (if installed), ineqdeco (if installed), ginidesc (if
             installed), ineqfac (if installed)