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
Premium Gini coefficient Lorenz curve Distribution of wealth
has an underlying meaning. When was chaos first discovered? Edward Lorenz was the first true experimenter in chaos‚ he was a meteorologist. In 1960 Edward Lorenz was working on a weather prediction problem‚ he had a computer set up to model the weather with twelve equations. His computer program did not predict the weather‚ but theoretically predicted what the weather might be. In 1961 Edward Lorenz wanted to see a specific sequence again‚ to save time he began in the
Premium Chaos theory Butterfly effect Fractal
Origin of disparities Gini coefficient Lorenz curve Disparities resulting from : - parental education - ethnicity - residence - income - employment - land ownership Gini coefficient is a measure of dispersion or inequality. It’s used to show inequality in wealth. (land distribution). It allows to analyze the changes in income inequality over time in individual countries and make comparisons between them. It ranges from 0 to 1. It is sometimes multiplied by hundred to give values from 0
Premium Poverty Lorenz curve Welfare economics
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
Premium Economic inequality Economics Gini coefficient
systems) would seem to be disordered or random or at least unpredictable. Chaos theory tries to find some underlying order in what appears to be random events or data. Edward Lorenz was an early pioneer of the theory. He was working on weather predictions in 1961 and was using a computer to help with the calculations. Lorenz had initiated a sequence of data based on twelve variables in his attempt to predict weather. He wanted to see the sequence again‚ so re-entered the data. To save time‚ he began
Premium Chaos theory Mathematics Butterfly effect
1)What is the development and growth ?How differ from each other? Growth is referred to the increase of per capita real gross domestic product over a period of time. Real GDP is a quantitative concept since it involves increased productive capacity in an economy‚ which leads to rising national output‚ incomes and living standards over time. Growth can occur from two main factors: 1. The increased use of resources such as land‚ labour‚ capital and entrepreneurial resources due to improvements in
Premium Third World Economics Gross domestic product
In addition‚ the Gini coefficient‚ “which directly relates to the graphical depiction of inequality provided by the Lorenz Curve” ‚ shows Australia rising from 0.307 in 1995/96 to 0.345 in 2007/08. This large increase in the Gini coefficient of around 0.25 to over 0.30 was a result of the 1991 recession‚ in which “long-term unemployment became entrenched and underemployment
Premium Economic inequality United States Distribution of wealth
How Computers Make Life Easier How Computers Make Life Easier Sometime in the early 1900s a German engineer named Konrad Zuse invented the first computer called the Z3. It was a functional program- controlled computer. He was also a computer pioneer. During this time there was a series of events recorded that entailed the beginning stages of computer use. Over time the development became greater. The society in which we live today has evolved
Premium Konrad Zuse Computer Computing
you talking about‚ or what the heck is a computer? So when was the first computer invented? Unfortunately this question has no easy answer because of all the different classifications and computers. The Z1 originally created by Germany ’s Konrad Zuse [1] in his parent’s living room in 1936 to 1938 is considered to be the first electrical binary programmable computer. In 1975 Ed Roberts coined the term personal computer when he introduced the Altair 8800. Although the first personal computer
Premium Computer Konrad Zuse
Table of Contents Abstract 3 Part 1 - Literature Review 4 1.1. Equity definitions 4 1.2. Measurements of inequality 4 Part 2 - Situation of Income Inequality in 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:
Premium Economic inequality Gini coefficient Poverty