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DER (version 1.3)

The PaF income polarization index: The PaF income polarization index

Description

The PaF income polarization index

Usage

paf(y, a, ncores = 1)
pafF(y, a, ncores = 1)

Value

The paf() function, for a single value of \(\alpha\), returns a vector with the PaF index, the alienation (twice the Gini index) and identification components and 1 + the normalized covariance. If a range of values of \(\alpha\) are given, it will return a matrix with the same components, where each row corresponds to a specific value of \(\alpha\).

The pafF() function returns only the PaF index for either one or more values of \(\alpha\).

Arguments

y

A numeric vector with income data.

a

The value of \(\alpha\). This can either be a number or a vector with many values. In any case, the \(\alpha\) may take values between 0.25 and 1.

ncores

The number of cores to use. If greater than 1, parallel computing will take place. It is advisable to use it if you have many observations and or many variables, otherwise it will slow down the process. The default is 1, meaning that code is executed serially.

Author

Michail Tsagris and Christos Adam.

R implementation and documentation: Michail Tsagris mtsagris@uoc.gr and Christos Adam econp266@econ.soc.uoc.gr.

Details

The functions compute the PaF index of Duclos, Esteban and Ray (2004) for either a specific value, or for a range of values, of \(\alpha\). The pafF() estimates the index using Eq. (8) and (9) in the paper, whereas paf() is faster as it uses Eq. (3) of the paper.

References

Duclos J. Y., Esteban, J. and Ray D. (2006). Polarization: concepts, measurement, estimation. In The Social Economics of Poverty (pp. 54--102). Routledge.

Duclos J. Y., Esteban, J. and Ray D. (2004). Polarization: concepts, measurement, estimation. Econometrica, 72(6): 1737--1772.

See Also

paf.boot

Examples

Run this code
y <- rgamma(100, 10, 0.01)
paf(y, 0.25)
paf( y, c(0.25, 0.5, 0.75, 1) )

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