OmegaTIP: Matrix for testing TIP dominance

Description Usage Arguments Details Value Author(s) References See Also

View source: R/OmegaTIP.R

Description

The auxiliary function OmegaTIP computes the (empirical) vector of TIP curve ordinates and its corresponding covariance matrix. This matrix will be used to compute the test-statistic to test for the TIP dominance relation between two TIP curves.

Usage

1
OmegaTIP(dataset, arpt.value, norm = FALSE, samp)

Arguments

dataset

a data.frame containing variables obtained by using the setupDataset function.

arpt.value

the at-risk-of-poverty threshold to be used (see arpt).

norm

logical; if TRUE, the normalized TIP curve ordinates are computed using the normalized poverty gaps (poverty gaps divided by the poverty threshold).

samp

an integer which represents the number of TIP curve ordinates to be estimated. These ordinates will be estimated at points p_i, where p_i=i/samp, i=1, ..., samp.

Details

Estimation of TIP curve ordinates and their covariance matrix are made following Beach and Davidson (1983) and Xu and Osberg (1998).

Calculations are made using the equivalized disposable income. The equivalence scales that can be employed are the modified OECD scale or the parametric scale of Buhmann et al. (1988). The default is the modified OECD scale (see setupDataset).

Value

A list with the following components:

Omega covariance matrix for the estimated vector of TIP curve ordinates.

tip.curve estimated vector of TIP curve ordinates.

Author(s)

A. Berihuete, C.D. Ramos and M.A. Sordo

References

C. M. Beach and R. Davidson (1983) Distribution-free statistical inference with Lorenz curves and income shares, Review of Economic Studies, 50, 723–735.

B. Buhmann et al. (1988) Equivalence scales, well-being, inequality and poverty: sensitivity estimates across ten countries using the Luxembourg Income Study (LIS) database, Review of Income and Wealth, 34, 115–142.

K. Xu and L. Osberg (1998) A distribution-free test for deprivation dominance, Econometric Reviews,17, 415–429.

See Also

testTIP, setupDataset, arpt


AngelBerihuete/laeken2 documentation built on May 5, 2019, 6:02 a.m.