r.fgt: Convex measure of affluence

Description Usage Arguments Details Value Author(s) References Examples

Description

Computes measure of affluence analogous to the convex version of Foster, Greer and Thorbecke (1984) family of poverty indices.

Usage

1
r.fgt(x, k, alpha)

Arguments

x

the income vector

k

multiple of the median income

alpha

parameter of the index: alpha > 1

Details

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.

Value

r

values of the sum in the index formula

r.fgt

the value of index

Author(s)

Alicja Wolny-Dominiak

References

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).

Examples

1
2

Example output

[1] 0.04682166

affluenceIndex documentation built on May 2, 2019, 8:20 a.m.