SKDECOMP

Description

skdecomp implements the Shapley value of the Kolenikov and Shorrocks (2003) decomposition of changes in a welfare indicator into growth, distribution, and price components. By applying Shapley values, the method resolves the path-dependence problem inherent in sequential decompositions.

Examples

* Basic Shapley-Kolenikov-Shorrocks decomposition
skdecomp income, by(year) varpl(pline)

* With regional poverty lines
skdecomp income, by(year) varpl(pline) idpl(region)

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

* With multiple poverty lines
skdecomp income, by(year) varpl(pline) mpl(1 2.5 6)

References

• Kolenikov, S. and Shorrocks, A. (2003). “A Decomposition Analysis of Regional Poverty in Russia.” Discussion Paper No. 2003/74, United Nations University.
• Shorrocks, A.F. (2012). “Decomposition procedures for distributional analysis: a unified framework based on the Shapley value.” Journal of Economic Inequality.

Citation

Atuesta, B., Azevedo, J.P., Castaneda, A. and Sanfelice, V. (2012). “SKDECOMP: Stata module to estimate Shapley value of growth, price, and distribution components on changes in poverty indicators.” Statistical Software Components S457564, Boston College Department of Economics.