Assessment of cross-sectional and longitudinal components of a difference with an algorithm of contour replacement

Dmitri A. Jdanov and Vladimir M. Shkolnikov
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Dmitri A. Jdanov: Max Planck Institute for Demographic Research, Rostock, Germany
Vladimir M. Shkolnikov: Max Planck Institute for Demographic Research, Rostock, Germany

No WP-2014-010, MPIDR Working Papers from Max Planck Institute for Demographic Research, Rostock, Germany

Abstract: This study proposes a new decomposition method which permits a difference in an aggregate measure at a final time point to be split into additive components corresponding to the initial differences in the event-rates of the measure and differences in trends in these underlying event-rates. The method is an extension of the existing algorithm of stepwise replacement. We provide a full description of the method and two examples of its application with mortality and fertility data. The outcome of these two decompositions are: 1) age-specific contributions of initial conditions and trends to the Japan-USA life expectancy gap in 2009 with a reference time point at 1970; and 2) age-specific contributions of initial conditions and trends to the difference in Czech-Russian age variations in fertility for the 1970 female birth cohorts with reference to the 1955 cohorts.

JEL-codes: J1 Z0 (search for similar items in EconPapers)
Pages: 11 pages
Date: 2014
New Economics Papers: this item is included in nep-cis
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Persistent link: https://EconPapers.repec.org/RePEc:dem:wpaper:wp-2014-010

DOI: 10.4054/MPIDR-WP-2014-010

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