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Create "Expenditure Shares Table"

Source: R/valid.R
valid_est.Rd

valid_est() in OECDsppps creates the "Expenditure Shares Table" see World Bank (2013), ICP (2021) and European Union/OECD et al. (2024) . The function calculates the:

  • Maximum- Highest expenditure share based on expenditure shares by group as specified by group_by()

  • Median - Median expenditure share based on expenditure shares by group as specified by group_by()

  • Minimum - Lowest expenditure share based on expenditure shares by group as specified by group_by()

  • max-median ratio test and median-min ratio test - see Details for more information All expenditure shares that do not pass the two tests are flagged in columns Max-median ratio FLAG andMedian-min ratio FLAG, respectively#'

Usage

valid_est(data, shares = "Expenditure shares for basic headings")

Arguments

data

A data frame or tibble containing at least one column with individual item-level expenditure shares.

shares

Column containing the individual item-level expenditure shares.

Details

Max-median ratio test: The ratio between the maximal and median observed expenditure shares for product \(j\), \(w_j\). Basic headings where the maximal observed expenditure is more than 25 times as big as the median are flagged in Max-median ratio FLAG: \[max-median~ratio = max(w_j)/median(w_j)\]

Median-min ratio test: The ratio between the median and minimal observed expenditure shares for product \(j\), \(w_j\). Basic headings where the median observed expenditure is more than 25 times as big as the minimum are flagged in Median-min ratio FLAG: \[median-min~ratio = median(w_j)/min(w_j)\]

References

European Union/OECD, Hearne D, Bailey D (2024). Eurostat-OECD Methodological Manual on Purchasing Power Parities (2023 Edition), volume 12(1). OECD Publishing, Paris. doi:10.2785/384854 , https://doi.org/10.1080/21681376.2025.2475115.

ICP (2021). “A Guide to the Compilation of Subnational Purchasing Power Parities (PPPs).” International Comparison Program. https://thedocs.worldbank.org/en/doc/5064f2288436664bc8f9811c8a5b8c55-0050022021/original/Guide-Subnational-PPPs.pdf.

World Bank (2013). Measuring the Real Size of the World Economy: The Framework, Methodology, and Results of the International Comparison Program — ICP. World Bank. doi:10.1596/978-0-8213-9728-2 .

Examples

suppressPackageStartupMessages(library(dplyr))
library(OECDsppps)
uk_hhe |>
 group_by(coicop_4d) |>
 valid_est(shares = 'expenditure_share')
#> # A tibble: 2 × 8
#>   coicop_4d Maximum expenditure …¹ Median expenditure s…² Minimum expenditure …³
#>   <chr>                      <dbl>                  <dbl>                  <dbl>
#> 1 01.1.1                      14.7                   8.38                   2.80
#> 2 04.3.2                      17.8                   8.45                   1.59
#> # ℹ abbreviated names: ¹​`Maximum expenditure share`,
#> #   ²​`Median expenditure share`, ³​`Minimum expenditure share`
#> # ℹ 4 more variables: `Max-median ratio` <dbl>, `Median-min ratio` <dbl>,
#> #   `Max-median ratio FLAG` <lgl>, `Median-min ratio FLAG` <lgl>