GINI COEFFICIENT The Gini coefficient is a summary statistic that measures how equitably income is distributed in a population. It is derived from the Lorenz curve which plots the cumulative percentages of the income and the population against which it is distributed. The line at 45 degrees thus represents perfect equality of incomes. The Gini coefficient is the ratio of the area that lies between the line of equality and the Lorenz curve divided by the total area under the line of equality. A
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Measuring inequality: Using the Lorenz Curve and Gini Coefficient 1. Introduction Almost thirty years ago‚ the author of this brief attended a lecture addressing the economics of inequality. At the start‚ the class was invited to imagine the implications of individual wealth being reflected in our personal height. Assume that by government decree‚ everyone has to march past a fixed point over the period of one hour‚ starting with the smallest people and ending with the largest. The parade
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integration into the world economy. Gini Coefficient The Gini Coefficient is a measure of statistical dispersion intended to represent the income distribution of a nation’s residents and is the most commonly used measure of inequality. It is represented by a number between 0 and 1 (or 100%). Amorika has a Gini Coefficient from 28%. According to the World Bank listing of Gini Index‚ Armorika would fall between Romania (27.3%) and Brazil (52.7%). The higher the Gini Index‚ the more unequal the distrubtion
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Why is income inequality an important issue for the Chinese society and its future economic growth? Introduction Nowadays‚ China has become the second largest economy in the world. The GDP (gross domestic product) of china was growing at 9.7% per year in average since 1978‚ which the year of Chinese “open door” politic founded. China also has become the biggest producer and consumer in many key agricultural and industrial markets and the largest FDI recipient among the developing countries. The
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COMMENTARY Corruption in India A Quantitative Analysis Vani K Borooah This article represents one of the first attempts at quantifying the level of corruption in India. This has been made possible by the unique website ipaidabribe.com which invites people who paid a bribe to record their experience. By choosing a specific issue – identity verification by a police officer prior to issuing a passport – it was able to focus on a “harassment” bribe‚ that is a bribe paid for something a person was
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MUMBAI. MAY 3‚ 2011 SOCIO-ECONOMIC CLASSIFICATION-2011 The New SEC system THE NEW SEC SYSTEM What is the new SEC system? 01 How do we classify a household in the new SEC system? 02 What are the advantages/ drawbacks of the new SEC system? 03 How was the new SEC system created? 04 What are the other systems that we considered? 05 What is the performance of the new SEC system? Conclusion THE NEW SEC SYSTEM 06 07 01 What
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. Consider a firm facing a make-or-buy decision‚ Provide 2 potential benefits and 2 risks that the firm may face from outsourcing. Similarly‚ provide 2 potential advantages and 2 disadvantages of in-house production. 5.. Explain the Gini Index (or Coefficient) and discuss how it is calculated and used. 6.. When presented with a scenario‚ indicate how one might act according to various approaches to Social Responsibility. 7.. What are the five forms of economic integration and how do they differ
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Vietnam in the period from 2000 to 2010 7 2.1. Situation 7 2.1.1. Income distribution among 5 quintiles 7 2.1.2. Income distribution between rural area and urban area 9 2.1.3. Income Distribution among 8 regions of Vietnam: 10 2.1.4. GINI coeffiecent 11 2.2. Consequences – the measurement of “40” 12 Part 3: Causes and recommendations and governmental policies for reducing Inequality in Income and enhancing Income Redistribution: 14 3.1. Causes of income inequality in Vietnam
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INTRODUCTION The subject of economic growth and equitable distribution of income of any country is an economically important one. The fulfillment of economic development in each country is based on achieving two goals‚ including fairly rapid economic growth and income distribution in society. More growth and better distribution is not possible at the same time-some economist argued. So it needs to make trade-off. The issue of growth and income distribution is very much concerns to the economist
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Income Inequality and the Lowest Quintile Income inequality is often associated with negative things such as decreased quality of life and a lack of social mobility. Yet‚ the lower classes are receiving less and less of the United States’ overall income while the top earners’ share is increasing. Why? This paper will explore causes of the growing income inequality as well as possible solutions to slowing it down. The income inequality gap has been growing over the past few decades‚ according to
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