Palma ratio

The Palma ratio is an alternative to the Gini index. The ratio focuses on the differences between those in the top and bottom income brackets.

Usage

concstats_palma(x, na.rm = TRUE, digits = NULL)

Arguments

x

A non-negative numeric vector.

na.rm

A logical vector that indicates whether NA values should be excluded or not. Must be either TRUE or FALSE. The default is TRUE. If set to FALSE the computation yields a message if the vector contains NA values. NAs will be removed for further computations.

digits

An optional value for digits. Specifies the minimum number of significant digits to be printed in values. The default is NULL and will use base R print option.

Value

A single numeric measure.

Details

concstats_palma measures the ratio of inequality (normally used with income inequality) of the top 10 percent to the bottom 40 percent.

References

Palma, J. G. (2006). "Globalizing Inequality: 'Centrifugal' and 'Centripetal' Forces at Work", DESA Working Paper No. 35.

See also

Other Concentration and inequality measures: concstats_all_inequ(), concstats_entropy(), concstats_gini(), concstats_grs(), concstats_inequ(), concstats_simpson()

Examples

# a vector of market shares
x <- c(0.4, 0.2, 0.25, 0.1, 0.05)
concstats_palma(x)
#> [1] 2.666667

concstats_palma(x, digits = 2)
#> [1] 2.67

# a vector with NA values
x <- c(0.4, 0.2, 0.25, 0.1, 0.05, NA)
concstats_palma(x, na.rm = FALSE)
#> [1] NA