Think about some particles of a gas being inequally distributed within a clo. Statistical software components from boston college department of economics. Most of its users work in research, especially in the fields of economics, sociology, political science, biomedicine, and epidemiology. Theyre easy to fit in say r see ltsreg in mass or the packages robust and robustbase for example. Stata module to produce refined theil index decomposition by group and quantile, statistical software components s458187, boston college department of economics. Instructions for reproducing acemoglu and dell 2010.
Research open access an analysis of health system resources. This article employs a theil decomposition analysis to examine various dimensions of income inequality, using the 200 7 indonesian family life survey. Export ttest table result to import to latex package. Estimation of inequality indices with decomposition by. The theil index is a statistic used to measure economic inequality. Two techniques for decomposing indicator changes at the sector level are structural decomposition analysis sda and index decomposition analysis ida. Ive just written some c code for theil sen, after some googling i dont have any definitive documentation on it. Hi all, i am trying to do theil decomposition using the stata module ineqdeco, but. Decomposition of theil index into within and between. Determinants of export diversification at the export. Stata module to calculate inequality indices with decomposition by subgroup, statistical software components s366007, boston college department of economics, revised 22 jan 2015. Basically the theil index is similar to the ginicoefficent but decomposable into within and betweengroup inequality. Hi, i am going to use decomposition of theil index into between and within component in order to map into intensive and extensive margin of export growth.
Whenever the commonly used leastsquares regression method is used for fitting an equation into a set of x,ydata points, all errors in the ydirection are normally distributed i. This module should be installed from within stata by typing ssc install theildeco. Instead, an input process like the latent z of the above. L opezfeldman 2006 discusses this decomposition in greater details and describes descogini, a stata command for calculating the components of the decomposition. Summary this tool illustrates how to decompose inequality measures by subgroups of populations. Z x f log x f dfx 3 and also the following which has since become more widely known as the mean logarithmic deviation. Then we enhance the set of desirable proprieties able to sustain that choice with the additional requirement of subgroup decomposability. To download the product you want for free, you should use the link provided below and proceed to the developers website, as this is the only legal source to get stata 11. These methods have become popular by, but are not restricted to, investigating the change of co2 emissions. Z log x f dfx 4 the second theil index or mld is an example of theils application of the concept of conditional entropy. Decompose theil index for data including zero values no. I may oversimplify, but try to explain the theil in that manner nevertheless.
I tried to decompose the income by race and strata, but it wont work. Condition indexes and variance decompositions for diagnosing. Stata is a generalpurpose statistical software package created in 1985 by statacorp. We wish to warn you that since stata 11 files are downloaded from an external source, fdm lib bears no responsibility for the safety. It is a revised and upgraded version of inequal published by edward whitehouse in stb23. Stata module to calculate inequality indices with decomposition by subgroup 2015 this item may be available elsewhere in econpapers.
Statas capabilities include data management, statistical analysis, graphics, simulations, regression, and custom programming. An overview of statistical decomposition techniques applied. That is, zero values cannot be included or analyzed because of the natural logarithm function in the formula. The theil index can be interpreted as the expected information content of the indirect message which transforms the population shares as prior probabilities into the income shares as posterior probabilities. The second theil index or mld is an example of theils application of the concept of conditional entropy. How do we decompose the inequality theil index using the command ineqdeco. Jan 20, 2008 the column vector x x 1, x 2, x n t of the model has n observable random variables x 1, x 2, x n such as phenotypes in biology. An analysis of health system resources in relation to. Pdf individual income inequality and its drivers in. The theil index can be calculated for groups of individuals and decomposed additively into withingroups t w and betweengroups t b components. The socalled atkinson class of indices is decomposable but not additively and the gini coefficient is neither. Philippe van kerm statistical software components from boston college department of economics.
My understanding of the intercept calculation is that i first calculate the median slope, and then construct a line through every data point with this slope, find the intercept of every line, and then take the median intercept. Hi, i am working on a counterfactual analysis of a decomposition of wage inequality using the theilindex. The coordinates of the column vector z stand for m nonobservable random factors z 1, z 2, z m, with n. A comparative analysis of index decomposition methods, by frederic granel. Files necessary for instalation and use of the software are provided here on the u. Stata march 1999 technical stb48 bulletin stata press. Dec 14, 2012 decomposition analysis of the theil index, to identify withincountry and betweencountry components of inequality, was also conducted using ineqdec0 package under stata software. A certain cause of bootstrap failure is that the program creates permanent variables. Most of its users work in research, especially in the fields of economics, sociology, political science, biomedicine, and epidemiology statas capabilities include data management, statistical analysis, graphics, simulations, regression, and custom programming.
It is a special case of the generalized entropy index. Ge class, which includes the two theil indices and the coefficient of variation. Theils decomposition has been popular in the economic and social sciences and has long been incorporated in popular statistical software packages such as stata jenkins 1995, 1999. Decomposition analysis of the theil index, to identify withincountry and betweencountry components of inequality, was also conducted using ineqdec0 package under stata software. Decomposition of overall inequality theils t table 6 provides the results of the decomposition of theils t for specialists into within and betweendistrict inequalities for all three time points. Which kind of estimator you need depends on what you need robustness against, how much of it you might need to deal with and how. Users of any of the software, ideas, data, or other materials published in the stb or the supporting files. Instructions for reproducing acemoglu and dell 2010 geospatial data construction program files. Theils decomposition finds many applications, including nested decomposition for multilevel data such as. Here is the first generate statement gen grouprefgroup1. Hi, i am working on a counterfactual analysis of a decomposition of wage inequality using the theil index. Our antivirus check shows that this download is clean. Theil decomposition decompose income inequality between and.
Decomposition analysis of the theil index, to identify withincountry and betweencountry components of inequality, was also conducted using ineqdec0 package 23 under stata software. It should serve as a basic introduction to ida and the laspeyre index, but it does not include the divisa index or any code implementing the methods. All the ingredients to carry out both the static decomposition of the index shorrocks 1980, econometrica and the dynamic decomposition mookherjee and shorrocks 1982, economic journal are easily accessible among the saved results of ineqdeco. The erreygers index ei for estimated health utility scores is 0. You will see that the theil index corresponds to ge1 in ineqdecos parlance. In the salaimartins sim from here on paper the theil index is derived as a particular case of a more general entropy index. Consider stephen jenkins ineqdeco available from the ssc archive. Column 12 and column 45 of table 2 provide the decomposition of mldtheil. Column 12 and column 45 of table 2 provide the decomposition of mld theil. Pdf evaluating distributional differences in income inequality with.
We identified clustering or dispersion of these key resources in the four gms countries by geographical information system gis analysis using geoda 0. Estimation of inequality indices with decomposition by subgroup. Theil index t t is calculated for alpha1, the mean log deviation t l for alpha0. Here is a chart that shows what the change of population, welfare, efficiency and fuel. Inclusion of zero values in theil s index a prevalent misconception exists in the application of theil s first measure and its decomposition i. Does anybody have experience with stata ado files or done this procedure before. The numerical result is in terms of negative entropy so that a higher number indicates more order that is further away from the ideal of maximum disorder.
Decomposition of theil index into within and between components hi, i am going to use decomposition of theil index into between and within component in order to map into intensive and extensive margin of export. Stata is a suite of applications used for data analysis, data management, and graphics. As the help for ineqdeco explains, the program is intended for. In particular, it defines the concepts of within and between inequality and analyses how different inequality indexes perform with respect to this decomposition. It enables you to analyse contributions of underlying factors to the change in an aggregate, using methods based on index number theory. Comparing structural decomposition analysis and index. Inequality indices, with optional decomposition by subgroup. The between and withindistrict values for 201220 are 0. For the convenience of users of earlier versions of these programs, a selected. Evaluating distributional differences in income inequality. Policy impacts on inequality decomposition of income inequality by subgroups 1 1.
These two indexes were initially presented by theil 1967 and have been widely applied in the social and economic sciences. The matrix x corresponds to a set of n observations on n genes, for instance. An overview of statistical decomposition techniques. Ge0 is the mean logarithmic deviation, ge1 is the theil index, and. Original article evaluating distributional differences in. The basic theil index t t is the same as redundancy in information theory which is the maximum possible entropy of the data minus the observed entropy.
Either theils first, or t, index or theils second, or l, index decomposition can be. The empirical rif for ei of health utility score ranked by income is calculated as explained in section 3 and the result is shown in a scatter plot in fig. Also ensure you have the latest versions of the programs. The theil index has many different possible formulations. Next, the first bootstrap replica is drawn, and the program is. For each member of the family of generalised entropy inequality indices. Few days ago, i finally finished a small package ida. Inclusion of zero values in theils index a prevalent misconception exists in the application of theils first measure and its decomposition i. Giammatteo the bidimensional decomposition of inequality. This module may be installed from within stata by typing ssc install ineqdeco. Jul 09, 2011 few days ago, i finally finished a small package ida. Elizabeth roberto december 2, 2016 abstract decomposition analysis is a critical tool for understanding the social and spatial dimensions of inequality, segregation, and diversity.
This report is accompanied by a cdrom that has the executable code, program tutorials, example files, source code and other supporting materials. Basically the theilindex is similar to the ginicoefficent but decomposable into within and betweengroup inequality. Stata module to calculate inequality indices with decomposition by subgroup, statistical software components s366002, boston college department of economics, revised 22 jan 2015. The nested decomposition of the theil index allows the overall level of inequality to be function of only three types of factors. The objective for the first four techniques is to obtain an estimate of the unknown structure matrix a by means of the observable x and hence to obtain information on z with the model as mentioned earlier, itf does not involve such a structure as above. The theil index is a statistic primarily used to measure economic inequality and other economic phenomena, though it has also been used to measure racial segregation the theil index t t is the same as redundancy in information theory which is the maximum possible entropy of the data minus the observed entropy. Either theil s first, or t, index or theil s second, or l, index decomposition can be requested. The actual developer of the program is statacorp lp. The socalled atkinson class of indices is decomposable but not additively. The module is made available under terms of the gpl v3. Look at the theil index as a measure for the distribution e. The groups i use for my analysis are educational pairings.
Introduction to index decomposition analysis cross validated. A decomposable measure of segregation and inequality. The stata newsa periodic publication containing articles on using stata and tips on using the software, announcements of new releases and updates, feature highlights, and other announcements of interest to interest to stata usersis sent to all stata users and those who request information about stata from us. It has also been used to measure the lack of racial diversity. Condition indexes and variance decompositions for diagnosing collinearity in linear model analysis of survey data dan liao1 and richard valliant2 1rti international, 701 th street, n. Stata module to calculate inequality indices with decomposition by subgroup. Theil, inequality and the structure of income distribution. Ge0 is the mean logarithmic deviation, ge1 is the theil index, and ge2 is half the square of the coefficient of variation. The theil index measures an entropic distance the population is away from the ideal egalitarian state of everyone having the same income.
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