dfl estimates DiNardo, Fortin and Lemieux Counterfactual Kernel Densities. graph cfactual compares the (Depvar=0) distribution to the (Depvar=0) distribution that would have prevailed if they had been paid like (Depvar=1), ufactual compares the (Depvar=1) distribution to the counterfactual. These will be different to the extent that the X's of the two groups differ) and diff (difference between the how (Depvar=0) distribution that would have prevailed if they had been paid like (Depvar=1) and (Depvar=1) distribution). Some options require the use of Philippe van Kerm's akdensity routine from SJ (findit akdensity).
DiNardo, J., N.M. Fortin, and T.Lemieux (1996) "Labour Market Insitutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Econometrica, 64(5): 1001-1044.
Van Kerm, P. (2003) "Adaptive kernel density estimation."The Stata Journal , 3(2): 148-156.
This module should be installed from within Stata by typing "ssc install dfl". Windows users should not attempt to download these files with a web browser.
kernel density; counterfactual; DiNardo; Fortin; Lemieux;
João Pedro Azevedo
jazevedo@worldbank.org
World Bank
personal page