Hi everyone,

I am trying to implement a decomposition method used by Quigley and Raphael in their 2004 JEP paper on housing affordability. They describe the method as follows:

"The decompositions are calculated as follows. Let F2000(.) be the 2000 rental cumulative density function (cdf), F1990(.) be the 1990 rental cdf, affordable2000 be equal to 30 percent of the income of the median renter in 2000, affordable1990 be equal to 30 percent of the income of the median renter in 1990, P2000 be the proportion of rental units renting for less than affordable2000,and P1990 be the proportion of rental units renting for less than affordable1990. Both affordable2000 and affordable1990 are measures in 1990 dollars. The change in the proportion affordable between 1990 and 2000 is given by the equation, Change= P2000 - P1990 =F2000(affordable2000) - F1990(affordable1990). Add and subtract the 1990 rental cdf evaluated at the 2000 affordable rent threshold to get, Change = F2000(affordable2000) - F1990(affordable2000) + F1990(affordable2000) - F1990(affordable1990) =[F2000(affordable2000) - F1990(affordable2000)] - [F1990(affordable1990) - F1990(affordable2000)]. The first term is the change in the proportion affordable arising from the change in the rental cdf around the 2000 affordability threshold. The second term is the change in the proportion affordable holding the rental distribution constant in 1990 and allowing the affordability threshold to change."

I am wondering if there is stata application capable of decomposing changes in variables based on this method?

Thanks in advance.

Musah