wINEQ (version 1.2.1)

Hoover: Hoover index

Description

Computes Hoover inequality measure of a given variable taking into account weights.

Usage

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

Value

The value of Hoover coefficient.

Arguments

X

is a data vector

W

is a vector of weights

Details

Let \(x_{i}\) be the income of the i-th person and \(\overline{x}\) be the mean income. Then the Hoover index H is: $$H={\frac {1}{2}}{\frac {\sum_{i}|x_{i}-{\overline{x}}|}{\sum_{i}x_{i}}}$$

References

Hoover E. M. Jr.: (1936) The Measurement of Industrial Localization, The Review of Economics and Statistics, 18

Hoover E. M. Jr.: (1984) An Introduction to Regional Economics, ISBN 0-07-554440-7

Examples

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

data(Tourism)
#Hoover index for Total expenditure with sample weights
X=Tourism$Total_expenditure
W=Tourism$Sample_weight
Hoover(X,W)