DRDECOMP

Description

drdecomp decomposes changes in poverty indicators into growth and distribution components using the Datt-Ravallion (1992) methodology combined with non-parametric Shapley value approaches from Shorrocks (1999/2012) and Kolenikov and Shorrocks (2003). This resolves the path-dependence problem inherent in the original Datt-Ravallion decomposition by averaging over all possible orderings.

Examples

* Basic Datt-Ravallion decomposition
drdecomp percapitainc, by(year) varpl(pline)

* With multiple FGT indicators
drdecomp percapitainc, by(year) varpl(pline) in(fgt0 fgt1 fgt2)

* With multiple poverty lines
drdecomp percapitainc, by(year) varpl(pline) mpl(1 3.5 6)

References

• Datt, G. and Ravallion, M. (1992). “Growth and redistribution components of changes in poverty measures.” Journal of Development Economics, 38, 275–295.
• Shorrocks, A.F. (2012). “Decomposition procedures for distributional analysis: a unified framework based on the Shapley value.” Journal of Economic Inequality.

Citation

Azevedo, J.P., Sanfelice, V. and Castaneda, A. (2012). “DRDECOMP: Stata module to estimate the Datt-Ravallion decomposition of changes in poverty.” Statistical Software Components S457563, Boston College Department of Economics.