Inequality programs ineqdeco, ineqdec0 updated on ssc stata. Rongjun sun, professor of sociology at cleveland state university. Stata module to calculate generalized entropy inequality. Only few institutions provide inequality estimates and those who do so e.
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. Measuring inequality for instance, by the gini index of concentration fro. When requesting a correction, please mention this items handle. Theil index related to natural gas consumption given in fig.
You will see that the theil index corresponds to ge1 in ineqdecos parlance. Hi, i am working on a counterfactual analysis of a decomposition of wage inequality using the theil index. Hereafter, theil index refers to theil s first measure. Our presentation focuses on the first theil measure, even though the r program for the proposed methods appendix a implements as well the proposed methods for the second theil measure, or theil s l. Theil decomposition decompose income inequality between. The groups i use for my analysis are educational pairings. Regional income inequality model based on theil index. A decomposable measure of segregation and inequality. Decomposing productivity disparity between and within. You will see that the theil index corresponds to ge1 in. Stata module to estimate price, quantity, and value index numbers, statistical software components s458005, boston college department of economics. These are useful for understanding the determinants and patterns of trade and for assessing the trade effects of certain trade policies, such as wto accessions or the signing of preferential trade agreements. The entropy index also called the information index measures the weighted average deviation of each areal unit from the metropolitan areas entropy or racial and ethnic diversity, which is greatest when each group is equally represented in the metropolitan area.
Stata module to compute theil r2 multicollinearity effect, statistical software components s457420, boston college department of economics. Withingroup inequalities in both the weighted methods are prevalent and almost constant due to the energy mix of the provinces in the same group. Hi borge, try findit ineqdeco after installing the ado file, read the help file. The module is made available under terms of the gpl v3. However, it does not have a straightforward representation and lacks the appealing interpretation of the gini coefficient. Stata module to produce refined theil index decomposition by group and quantile.
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. This module should be installed from within stata by typing ssc install index. Ge0 is the mean logarithmic deviation, ge1 is the theil index, and ge2 is half. It is a revised and upgraded version of inequal published by edward whitehouse in stb23. See general information about how to correct material in repec for technical questions regarding this item, or to correct its authors, title, abstract.
Export ttest table result to import to latex package. In the salaimartins sim from here on paper the theil index is derived as a particular case of a more general entropy index. Hosted by icpsr and the social science data analysis network ssdan, the webinar featured dr. Ge0 is the mean logarithmic deviation, ge1 is the theil index, and ge2 is half the square of the coefficient of variation. Constructing long and dense timeseries of inequality using the theil index yeartoyear economywide measures of income distribution, such as the gini coefficient, are rarely available for long periods except in a few developed countries, and as a result few analyses of yeartoyear changes in inequality exist. A stata package for measuring inequality from incomplete. Basically the theil index is similar to the ginicoefficent but decomposable into within and betweengroup inequality. Statistical software components from boston college department of economics. The theil index has many different possible formulations. Hidden camera investigation on what really happens to your car cbc marketplace duration. I tried to decompose the income by race and strata, but it wont work. Problem with a counterfactual analysis of the theilindex.
Login or register by clicking login or register at the topright of this page. Otherwise, if you wanted one of his other parameters, then ignore this. Cristian said did someone now how is there a comand to calculate the theil index cristian should 1 read and heed the statalist faq 2 try findit theil kit. As the help for ineqdeco explains, the program is intended for application to individuallevel data only. This module should be installed from within stata by typing ssc install theildeco. 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. To my understanding, this decomposition can be done using general entropy measures, such as ge0 theil index and ge1 the mean log deviation. Finally, a number of simulation methodologies, which. In my counterfactual analysis i have data from two years.
Finds theil s 1972 entropy index for each observation or for a given group and saves it in a new variable. Perhaps you also have state, region or nationallevel population data but you dont tell us. Ge0 is the mean logarithmic deviation, ge1 is the theil index, and ge2 is half the. It is a special case of the generalized entropy index. Jenkins ineqdeco package which calculates several inequality measures usually applied to income inequality, while i am looking at productivity. 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.
Lorenzo giovanni bellu, agricultural policy support service, policy assistance. Helping students to measure income and health inequality. Stata module to produce refined theil index decomposition by group and quantile, statistical software components s458187, boston college department of economics. The definition of a generalised inequality index is the following. The theil index is a statistic primarily used to measure economic inequality and other economic. 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. Compared to the gini index, it has the advantage of being additive across different subgroups or regions in the country. Author support program editor support program teaching with stata examples and datasets web resources training stata conferences. The theil index is part of a larger family of measures referred to as the general entropy class.
Henri hans theil october, 1924 august 20, 2000 was a dutch econometrician, professor at the netherlands school of economics in rotterdam, known for his contributions to the field of econometrics. Stata users group meetings on the stata generalized entropy index command. This module may be installed from within stata by typing ssc install. 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. Easypol module 051 theil index and enropy class indexes. Update on other measures of income inequality atkinson index, gini coefficient, relative. Elizabeth roberto december 2, 2016 abstract decomposition analysis is a critical tool.
It is a revised and upgraded version of inequal7 and inequal published by edward whitehouse in stb23. The gini index is the most popular index of inequality3. If you really wanted the theil sen median slope, then download the somersd package from ssc, which calculates confidence intervals for it. I am not principally an econometrician, but i know theil invented more than one parameter. Theil s t, or the first theil measure, we subsequently drop the subscript t. Update on other measures of income inequality atkinson index, gini coefficient, relative mean deviation, theil index, 19172015. Theyre easy to fit in say r see ltsreg in mass or the packages robust and robustbase for example.
Finds theil s 1972 information h index for all observations in the data set or within each bysort group. Stata program atkinson, inequal, lorenz, relsgini these four adofiles provide a variety of measures of inequality. Original article evaluating distributional differences in. Users of the r data analysis software can install the ineq package which allows for computation of a variety of. Focus on the provincial inequalities in energy consumption. All material on this site has been provided by the respective publishers and authors. But you only have average income for states within a region, and i suspect there are few states within a region. Stata module to estimate price, quantity, and value. Let us now examine how it performs with respect to the decomposability issue.
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