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Stata - Decomposition of differences in distribution using quantile regression

Rqdeco is a Stata command computing a decomposition of differences in distributions using quantile regression. It is a generalization of the Oaxaca/Blinder decomposition since it decomposes observed differences into a part explained by differences in characteristics and a part explained by differences in coefficients. It is very similar to the Machado/Mata decomposition. This estimator is defined in the first chapter of my PhD thesis.

Rqdeco3 implements the estimator suggested in Melly (2005, “Decomposition of differences in distributions using quantile regression”). It decomposes differences in distribution into three components: characteristics, median coefficients and residuals. It is conceptually similar to the Juhn, Murphy and Pierce (1993) decomposition but allows for heteroscedasticity.

Note that cdeco and cdeco_jmp are similar but more sophisticated and flexible. Therefore, I will no longer improve rqdeco and rqdeco3 and suggest using these commands instead.

The easiest way to install the commands is to type:
net install rqdeco, from("https://sites.google.com/site/blaisemelly/")
directly in the Stata command prompt.

Alternatively you can download the .ado and .hlp files and copy them in your personal ado directory. (Where is my personal ado directory?)