Deflate welfare mean — deflate_welfare

Adjust the welfare mean of a survey to constant PPP-adjusted dollars to make surveys comparable over time and across countries.

Usage

deflate_welfare_mean(welfare_mean, ppp, cpi)

Arguments

welfare_mean: numeric: The weighted welfare mean from a survey.
ppp: numeric: PPP value
cpi: numeric: CPI value.

Value

numeric

Details

Note that the CPI value to be used must be pre-adjusted so that welfare aggregates are comparable across surveys within a given country. This implies that adjustments to account for temporal and spatial factors within the survey as well as currency changes between surveys must already have been made.

References

Azevedo, J. P., P. A. Corral, D. Jolliffe, C. Lakner, D. G. Mahler, J. Montes, M. C. Nguyen, E. B. Prydz. 2018. "Prices used in Global Poverty Measurement". Global Poverty Monitoring Technical Note 3. World Bank, Washington, DC.

Examples

# Simple examples
deflate_welfare_mean(100, ppp = 5, cpi = 1.5)
#> [1] 13.33333
deflate_welfare_mean(10.3, ppp = 1.2, cpi = 0.1)
#> [1] 85.83333

# Works on vectors as well
deflate_welfare_mean(c(100, 10.3), ppp = c(5, 1.2), cpi = c(1.5, 0.1))#'
#> [1] 13.33333 85.83333