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## Decomposition of differences in distributions 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("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?)

zip-file
containing the ado, hlp and do files