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## Inference on counterfactual distributions

The Stata commands
counterfactual, cdeco and cdeco_jmp implement the estimators suggested in
Chernozhukov, Fernández-Val and Melly (2012, “Inference on
counterfactual distributions”). The command **counterfactual**
estimate the effects of changes in the distribution of covariates on the
distribution of the dependent variable. It also provides procedures to make
inference on the counterfactual distribution functions. The **cdeco** uses the counterfactual
distribution to decompose the differences between two observable quantile functions.
This is similar in principle to the famous Oaxaca/Blinder decomposition of the
quantile differences. The **cdeco_jmp **command
implements a decomposition in three components: characteristics, median
coefficients and residuals. This is similar to the Juhn, Murphy and Pierce
decomposition.

The easiest way
to install the commands is to type

net
install counterfactual,
from("http://www.econ.brown.edu/fac/Blaise_Melly/")

on
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?)

COUNTERFACTUAL: zip-file containing the ado, hlp
and do files

CDECO: zip-file containing the ado, hlp and do
files

CDECO_JMP: zip-file containing the ado, hlp and do
files