Hi all,
I apologize if these questions have been answered throughout the forum, I have viewed several topics but haven't been able to find precise answers to all my questions. Essentially, I am building upon a paper authored by Montecino and Epstein (2017) which combines RIF regressions with Oaxaca-Blinder decomposition in a study related to the effects of QE on income inequality in the US. In this case, the two groups are the panel at t=0 and the panel at t=1. Interestingly, the authors mention they perform the decomposition algebraically (not sure how they calculate the SEs algebraically). I have used three packages in stata so far, one being oaxaca (Jann), and the others being oaxaca_rif (Rios-Avila) and rifhdreg(Rios-Avila). When using oaxaca, I first generated the RIF for my Y using rifvar (Rios-Avila), and then using this as my Y for the oaxaca regression. Of course when using oaxaca_rif, the package does this all-inclusive. For comparative purposes, I also conducted a regression for each time period using rifhdreg, and used the means in either time period to calculate my endowments and coefficients together with the estimated regression coefficients. However, when doing this algebraically, the estimates do not come close to those produced by the oaxaca or the oaxaca_rif package, which are also different from each other. Does anyone know what the reason for this might be?
Another question I have is related to my use of categorical variables. My dataset has continuous variables which have been logged, as well as dummies coded into 0 for no and 1 for yes, and then two categorical variables coded 0 1 2 and 1 2 3 4 5 7. I first used xi and specified I wanted the category 1 to be omitted, which worked. However, when using the "categorical" function in oaxaca, where I included these variables to prevent the baseline category bias from affecting results, I receive an error:
_error(): 3300 argument out of range
oaxaca_normalize(): - function returned error
<istmt>: - function returned error
In the case of oaxaca_rif, I see there is the normalize function, but I am not sure if this applies to categorical variables? (could be mixing my terminology up with standardize).
Thanks in advance for any help, it is much appreciated. Apologies again if any of this has been asked already.
Best,
Darius
Link to the Montecino and Epstein paper: https://www.cepweb.org/wp-content/up...cino-paper.pdf
I apologize if these questions have been answered throughout the forum, I have viewed several topics but haven't been able to find precise answers to all my questions. Essentially, I am building upon a paper authored by Montecino and Epstein (2017) which combines RIF regressions with Oaxaca-Blinder decomposition in a study related to the effects of QE on income inequality in the US. In this case, the two groups are the panel at t=0 and the panel at t=1. Interestingly, the authors mention they perform the decomposition algebraically (not sure how they calculate the SEs algebraically). I have used three packages in stata so far, one being oaxaca (Jann), and the others being oaxaca_rif (Rios-Avila) and rifhdreg(Rios-Avila). When using oaxaca, I first generated the RIF for my Y using rifvar (Rios-Avila), and then using this as my Y for the oaxaca regression. Of course when using oaxaca_rif, the package does this all-inclusive. For comparative purposes, I also conducted a regression for each time period using rifhdreg, and used the means in either time period to calculate my endowments and coefficients together with the estimated regression coefficients. However, when doing this algebraically, the estimates do not come close to those produced by the oaxaca or the oaxaca_rif package, which are also different from each other. Does anyone know what the reason for this might be?
Another question I have is related to my use of categorical variables. My dataset has continuous variables which have been logged, as well as dummies coded into 0 for no and 1 for yes, and then two categorical variables coded 0 1 2 and 1 2 3 4 5 7. I first used xi and specified I wanted the category 1 to be omitted, which worked. However, when using the "categorical" function in oaxaca, where I included these variables to prevent the baseline category bias from affecting results, I receive an error:
_error(): 3300 argument out of range
oaxaca_normalize(): - function returned error
<istmt>: - function returned error
In the case of oaxaca_rif, I see there is the normalize function, but I am not sure if this applies to categorical variables? (could be mixing my terminology up with standardize).
Thanks in advance for any help, it is much appreciated. Apologies again if any of this has been asked already.
Best,
Darius
Link to the Montecino and Epstein paper: https://www.cepweb.org/wp-content/up...cino-paper.pdf
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