Hoover Index Calculator

Observed Hoover income inequality½Σ|xi−mean|/Σxi, unweightedcompletepeople, nonnegative incomes/positive total. Not an income level or causalredistributionpolicy.

Description

The Hoover index summarizes income deviations from the mean relative to total income.

The Hoover index summarizes income deviations from the mean relative to total income.1

Its arithmetic depends on a consistent set of nonnegative observations. The calculation and input requirements are explained below.

When to use Hoover Index Calculator

Enter a nonempty list of nonnegative incomes with positive total.

How to use Hoover Index Calculator and how it works

  1. Prepare the measurements or independently established model inputs described below, with matching units and observation scope.
  2. Enter the required fields and run Hoover Index Calculator.
  3. Read the result fields using the formula, output units, signs and ordering explained below.
  4. Correct any rejected inputs and rerun; interpret the result within the stated model and its assumptions.
Input fieldMeaningValue typeRequirement
actualNonnegativeIncomeObservationsActual Nonnegative Income Observations. Use the units and matching context stated in the calculation below.array of numberRequired; other constraints below

Enter a nonempty list of nonnegative incomes with positive total. Compute their unweighted mean, sum absolute deviations and divide by twice total income. Return a dimensionless Hoover fraction; no survey weights or redistribution policy are selected.

hooverFraction=sum(abs(income-mean(income)))/(2*sum(income))

Apply the input ordering, units and branch conditions stated above.

Output fieldMeaningValue type
resultObject containing the calculated or selected fields below.object
result.valueNumeric result under the formula and output units explained above.number
json
{
  "input": {
    "actualNonnegativeIncomeObservations": [
      1,
      3
    ]
  },
  "output": {
    "result": {
      "value": 0.25
    }
  }
}

Limitations and assumptions

The calculation uses the supplied observations and model inputs. It does not collect measurements, select a reference population or coefficient, or establish that the model applies to the actual case. The stated branch conditions and output units remain part of the result.

All fields require explicit values. Unexpected fields, wrong types, nonfinite numbers and sparse arrays are rejected. Alignment, bounds and supported-token rules are explained above; extremely large inputs or nonfinite results can also fail. Input errors differ from successful false comparisons, unavailable-domain flags and empty match lists.

Alternative or Complementary methods

Use Middle Class Share Percentage Calculator for a complementary operation: The middle-class share depends on a caller-defined classification and eligible population.

Use Income Quintile Share Calculator for a complementary operation: Income quintiles divide a population into five equally populated groups.

References

  1. Hoover Index Calculator — tool.io

Similar or alternative tools

Don't forget to set a bookmark for tool.io!
Privacy | Imprint | Cookies