S90S40: Palma index
In affluenceIndex: Affluence (Richness) Indices

Description Usage Arguments Details Value Author(s) References

Computes the Palma index (also known as S90/S40 ratio)

1	S90S40(x, weight)

`x`	income vector
`weight`	vector of weights

The Palma index is the ratio between the income share of the top 10\% and the bottom 40\%. The weighted Palma index (with weights w_1,w_2,...,w_n) is given by:

S90/S40 = \frac{∑_{i=1}^n{x_iw_i}\boldsymbol{1}_{x_i>q_{w(0.9)}}}{∑_{i=1}^n{x_iw_i}\boldsymbol{1}_{x_i ≤q q_{w(0.4)}}},

where x_i is an income of individual i, n is the number of individuals, q_{w(0.9)},q_{w(0.4)} are the 0.9 and 0.4 quantiles, respectively, \boldsymbol{1}_{(\cdot)} denotes the indicator function, which is equal to 1 when its argument is true and 0 otherwise.

S90S40

the value of index

Anna Saczewska-Piotrowska, Alicja Wolny-Dominiak

Cobham A., Sumner A.(2013). Is it all about the tails? The Palma measure of income inequality. Working Paper No. 343, Center for Global Development

affluenceIndex documentation built on Jan. 5, 2022, 5:07 p.m.