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affluenceIndex (version 2.2)

r.med: Average affluence gap

Description

Computes the average affluence gap of population.

Usage

r.med(x, weight, k)

Value

gap

the value of the average affluence gap

Arguments

x

income vector

weight

vector of weights

k

multiple of the median income

Author

Alicja Wolny-Dominiak, Anna Saczewska-Piotrowska

Details

Medeiros (2006) defined an average affluence gap. Weighted gap (with weights \(w_1,w_2,...,w_n\)) is given by: $$R^{Me}= \frac{\sum_{i=1}^n \max\{x_i-\rho_w,0\}w_i}{\sum_{i=1}^nw_i},$$ where \(x_i\) is an income of individual \(i\), \(n\) is the number of individuals, \(\rho_w\) is the richness line. Medeiros' index is not standarized and is an absolute measure of richness.

References

Medeiros M. (2006) The rich and the poor: the construction of an affluence line from the poverty line. Social Indicators Research, 78, pp. 1-18.

Examples

Run this code
data(affluence)
r.med(affluence$income, weight = NULL, 2)

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