MPIDR Working Paper

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

MPIDR Working Paper WP-2014-010, 11 pages.
Rostock, Max Planck Institute for Demographic Research (November 2014)

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.
The Max Planck Institute for Demographic Research (MPIDR) in Rostock is one of the leading demographic research centers in the world. It's part of the Max Planck Society, the internationally renowned German research society.