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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.
    (link to publication)

    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)