Learn R Programming

affluenceIndex (version 2.2)

r.hc: Richness headcount ratio

Description

Computes the richness headcount ratio.

Usage

r.hc(x, weight, k)

Value

count.rich

the number of the rich

r.hc

the value of index

Arguments

x

the income vector

weight

weight vector of population

k

multiple of the median income

Author

Alicja Wolny-Dominiak, Anna Saczewska-Piotrowska

Details

Richness headcount ratio is a proportion of the population with incomes above the affluence line. Weighted version (with weights \(w_1,w_2,...,w_n\)) of this ratio is given by: $$R^{HC}(\boldsymbol{x},\boldsymbol{w},\rho_w) = \frac{\sum_{i=1}^n \boldsymbol{1}_{x_i > \rho_w}w_i}{\sum_{i=1}^n{w_i}},$$ where \(x_i\) is an income of individual \(i\), \(n\) is the number of individuals, \(\rho_w\) is the richness line,\(\boldsymbol{1}_{(\cdot)}\) denotes the indicator function, which is equal to 1 when its argument is true and 0 otherwise.

References

1. Brzezinski M. (2010) Income affluence in Poland. Social Indicators Research, 99, pp. 285-299.
2. Saczewska-Piotrowska A. (2015) Identification of determinants of income richness using logistic regression model. Zarzadzanie i Finanse. Journal of Management and Finance, 4, Part 2, pp. 241-259 (in Polish).

Examples

Run this code
data(affluence)
affluence$weight <- rep(1, nrow(affluence))
r.hc(affluence$income, affluence$weight, 3)

Run the code above in your browser using DataLab