This repo contains all the files necessary to run the R shiny app located at: https://shanejorr.shinyapps.io/nc-palma/. The app.R file is the only file the needs to be ran.
The Palma ratio is a measure of income inequality and represents the ratio of incomes shares of the top 10% to the bottom 40%. It is derived by summing all incomes in the top 10% and bottom 40%, and then dividing the the summed income of the top 10% by the bottom 40%.
Income data comes from the US Census's Public Use Microdata Areas (PUMA). Estimated federal and state income taxes, and FICA (payroll) taxes were removed from income. These taxes were estimated using the NBER's tax simulation model.
We also adjuted post-tax household incomes based on household size. For the adjustments, we used the US Census's equivalency scale.