Palma {wINEQ}

Palma index

Description

Palma proportion - originally the ratio of the total income of the 10% richest people to the 40% poorest people.

Usage

Palma(X, W = rep(1, length(X)))

Arguments

X

is a data vector (numeric or ordered factor)

W

is a vector of weights

Details

Palma index is calculated by the following formula:

Palma =\frac{H}{L}

where H is share of 10% of the highest values, L is share of 40% of the lowest values.

Value

The value of Palma coefficient.

References

Cobham A., Sumner A.: (2013) Putting the Gini Back in the Bottle? 'The Palma' as a Policy-Relevant Measure of Inequality

Palma J. G.: (2011) Homogeneous middles vs. heterogeneous tails, and the end of the ‘Inverted-U’: the share of the rich is what it’s all about

Examples

# Compare weighted and unweighted result
X=1:10
W=1:10
Palma(X)
Palma(X,W)

data(Tourism)
#Palma index for Total expenditure with sample weights
X=Tourism$`Total expenditure`
W=Tourism$`Sample weight`
Palma(X,W)