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From |
Austin Nichols <austinnichols@gmail.com> |

To |
statalist@hsphsun2.harvard.edu |

Subject |
Re: st: shift-share analysis (counterfactual) of inequality changes by subgroups using ineqdeco |

Date |
Wed, 13 Jun 2012 14:02:18 -0400 |

Nicola Pensiero <nicola.pensiero@gmail.com>: Can you clarify what you mean by this? foreach num of numlist 1/30 { local my_GE`num' = `v_`num''^0 * `s_`num''^1 * `GE_alpha1_`num'' + `v_`num''^0 * `s_`num''^1* log(`s_`num''^1) } Are you really taking v locals to the zero power? This reduces to s_i*G_i + s_i*ln(s_i). On Wed, Jun 13, 2012 at 4:51 AM, Nicola Pensiero <nicola.pensiero@gmail.com> wrote: > Dear STATA users, > my question is related to the shift-share analysis (counterfactual) of > inequality changes by subgroups using the module ineqdeco. The problem > is that the estimated counterfactual Theil (GE(1)) value is negative, > which probably means that the implementation of the formula is wrong > in some ways. > > I have households groups with a given income measured in two years > (1977 and 2010). > > Given the quantities household type mean and population share of group > x, I ask what would have happened to inequality (within and between > groups) in year 2010 if the subgroup population share, v_k was the one > of year 1977. > > > My implementation of the counterfactual exercise is as follows. > > > I saved the subgroup population share v_x from year 1977 > > ineqdeco income1977, by (group) > foreach x of num 1/30 { > local v_`x' = r(v_`x') > } > > Then I saved the subgroup income share s_x and GE_k for year 2010. > > ineqdeco income2010, by (group) > > foreach x of num 1/30 { > local s_`x' = r(theta_`x') > } > > foreach x of num 1/30 { > local GE_alpha1_`x' = r(ge1_`x') > } > > > Finally, I used the subgroup population share from year 1977 and the > subgroup income share and GE_k from year 2010 in the calculation of > Theil index GE(1). > > foreach num of numlist 1/30 { > local my_GE`num' = `v_`num''^0 * `s_`num''^1 * `GE_alpha1_`num'' + > `v_`num''^0 * `s_`num''^1* log(`s_`num''^1) > } > > local my_GEglobal = `my_GE1' +........ `my_GE30' > > Thank you, Nicola Pensiero > > PS: the index should be decomposed in its within and between > components as follows: > > GE = SUM [v_k^(1-a)] . [s_k^a] . GE_k(a) + GE_Between(a) > where GE_B(a) is derived assuming every person within a given subgroup > k received k's mean income, m_k. * * For searches and help try: * http://www.stata.com/help.cgi?search * http://www.stata.com/support/statalist/faq * http://www.ats.ucla.edu/stat/stata/

**Follow-Ups**:**Re: st: shift-share analysis (counterfactual) of inequality changes by subgroups using ineqdeco***From:*Nicola Pensiero <nicola.pensiero@gmail.com>

**References**:**st: shift-share analysis (counterfactual) of inequality changes by subgroups using ineqdeco***From:*Nicola Pensiero <nicola.pensiero@gmail.com>

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