Description Usage Arguments Details Value Author(s) References Examples
Computes measure of affluence analogous to the convex version of Foster, Greer and Thorbecke (1984) family of poverty indices.
1 | r.fgt(x, k, alpha)
|
x |
the income vector |
k |
multiple of the median income |
alpha |
parameter of the index: |
Peichl et. al (2008) defined an affluence index
R_{α}^{FGT,T2}(\mathbf{x},ρ)=\frac{1}{n} ∑_{i=1}^{n} ≤ft( ≤ft(\frac{x_i - ρ}{ρ} \right)_{+} \right)^{α},α>1,
where x_i is an income of individual i, n is the number of individuals, ρ is the richness line. Index satisfies transfer axiom T2 (convex): a richness index should decrease when a rank-preserving progressive transfer between two rich people takes place.
r |
values of the sum in the index formula |
r.fgt |
the value of index |
Alicja Wolny-Dominiak
1. Foster J.E., Greer J., Thorbecke E. (1984) A class of decomposable poverty measures. Econometrica, 52, pp. 761-766.
2. Peichl A., Schaefer T., Scheicher C. (2008) Measuring richness and poverty - A micro data application to Europe and Germany. IZA Discussion Paper No. 3790, Institute for the Study of Labor (IZA).
1 2 |
[1] 0.04682166
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