Introducing the Gini Index? What does it reflect?

Updated on Financial 2024-02-08
7 answers
  1. Anonymous users2024-02-05

    What is the Gini Index.

    The Gini Index is an indicator created by the Italian economist Gini to determine the degree of equality in distribution. A society's Gini index below 0.2 indicates an absolute average income; 0.2 to 0.3 indicates relatively average; 0.3 to 0.4 indicates relative reasonableness; 0.4 to 0.5 indicates a large income gap; Above 0.6 indicates a wide income disparity.

    The distribution of wealth in many developed countries is more even. The Gini index of Danmai, Finland, Sweden and other countries in Northern Europe is controlled at around 0.2, which is more than half of that in China. The vast majority of developed countries in Europe and Japan are controlled below 0.3.

    In the United States, where wealth is most unevenly distributed among developed countries, the Gini index is around 0.35.

    Some argue that rapid growth in the Gini index is inevitable for developing countries and regions. In fact, the history of economic development does not support this view. Japan experienced rapid development between the fifties and eighties of the last century, but the structure of social distribution did not develop significant polarization.

    To date, Japan's Gini index remains below 0.26.

  2. Anonymous users2024-02-04

    The Gini index is an economic academic language, which refers to the percentage of wealth that is owned by the percentage of people.

    It is derived from the Lorenz curve and ranges from 0 to 1, the closer the number is to 0, the more equal the social distribution is, and the more equal it is to 0: the closer the number is to 1, the more unequal the distribution is, and the more equal to 1 is completely unequal.

    He can reflect the distribution of social wealth in a country, the international Gini index warning line is 0 4, and China is currently around.

  3. Anonymous users2024-02-03

    The Gini system is the percentage of people who own the wealth. It reflects the distribution of wealth in society (the reason why the disparity between the rich and the poor in our country is based on this).

  4. Anonymous users2024-02-02

    By 2021, China's Gini coefficient will be about. According to the data of the National Bureau of Statistics, in 1978, China's Gini coefficient was higher year by year than it crossed the warning line in 2000 and exceeded it in 2004. Since then, the National Bureau of Statistics has stopped publishing the Gini coefficient in China.

    Since then, the Gini coefficient has been mostly estimated by economists. According to a report by the Chinese Academy of Social Sciences, China's Gini coefficient reached in 2006 and decreased by 2021.

    The Gini Index refers to the internationally used index to measure the income gap of residents in a country or region. The Gini coefficient is at most "1" and at least "0". The closer the Gini coefficient is to 0, the more even the income distribution tends to be.

    Internationally, income below the absolute average, and income between relative average; It is considered a reasonable income; It is seen as a large income gap. When the Gini coefficient reaches above, it indicates that the income gap is large.

    Extended Information China's Gini coefficient is . The cordons crossed since 1994 (except for 1999) have generally shown an upward trend year by year, surpassing those in 2004.

    After that, the National Bureau of Statistics will no longer publish the Gini coefficient in our country. Since then, the Gini coefficient has been mostly estimated by economists. According to the Chinese Academy of Social Sciences, China's Gini coefficient reached its annual year in 2006, and two researchers from Xinhua News Agency judged that China's Gini coefficient actually exceeded it.

    The Gini Index refers to the internationally used index to measure the income gap of residents in a country or region.

    2. The Gini coefficient is at most "1" and at least "0". The closer the Gini coefficient is to 0, the more even the income distribution tends to be. There is no international organization or textbook that gives the most appropriate standard for the Gini coefficient.

    However, many people believe that when the Gini coefficient is less, residents' incomes are too average, more even, more reasonable, and the gap is too large. In between, there is a big gap between the time and the time. The Gini index was first proposed by the Italian statistician and sociologist Corrado Gini in 1912.

    The Gini coefficient is at most "1" and at least "0". The closer the Gini coefficient is to 0, the more even the income distribution tends to be. There is no international organization or textbook that gives the most appropriate standard for the Gini coefficient.

    However, many people believe that when the Gini coefficient is less, residents' incomes are too average, more even, more reasonable, and the gap is too large. In between, there is a big gap between the time and the time.

    3. Lorentz curve and Gini coefficient, Hirschman proposed an index to judge the degree of equality of distribution according to the Lorentz curve. Let the area between the real income distribution curve and the absolute equality curve of income distribution be a, and the area at the bottom right of the real income distribution curve is b. The quotient of a divided by (a+b) indicates the degree of inequality.

    This value is called the Gini coefficient or Lorentz coefficient. If a is zero, then the Gini coefficient is zero, indicating that the income distribution is completely equal; If b is zero, then the coefficient is 1, indicating absolute inequality in income distribution. The more equal the income distribution, the smaller the radian of the Lorentz curve, and the smaller the Gini coefficient.

    Conversely, the more unequal the income distribution, the greater the arc of the Lorentz curve, and the greater the Gini coefficient.

  5. Anonymous users2024-02-01

    The Gini coefficient is between 0 and 1, and the larger the Gini coefficient, the higher the degree of inequality; The expression for the Gini coefficient is g=a (a+b).

    Organizations such as the United Nations Development Programme (UNDP) stipulate that:

    Height average: A lower Gini coefficient indicates a very low index grade;

    Comparative average: Gini coefficient between indicates a low exponential grade;

    Relatively reasonable: the Gini coefficient is expressed in the exponential hierarchy;

    Large gap: indicates a high index grade;

    Wide disparity: The above indicates that the index level is extremely high.

    When everyone in a society has the same income and the income distribution is absolutely equal, the Gini coefficient is 0; When the income of the whole society is concentrated in one person and the income distribution is absolutely uneven, the Gini coefficient is 1. In real life, neither scenario is possible. When the difference between each person's income is large, the Gini coefficient is high, and when the gap is small, the Gini coefficient is low.

    The Gini coefficient is calculated based on the Lorenz curve, which is the income distribution curve. In the chart below, the horizontal axis is the cumulative percentage of the population, and the vertical axis is the percentage of the cumulative income. The green diagonal line is the absolute average income distribution line, the black vertical line is the absolute unequal income distribution line, and the orange line is the actual income distribution curve that is commonly seen.

    Area a between the green and orange lines is equivalent to the portion of income that is used for the unequal distribution. The Gini coefficient is equal to a (a+b), which in economics is the proportion of income used for unequal distribution to total income.

  6. Anonymous users2024-01-31

    The Gini coefficient is an index proposed by the Italian economist Gini in 1922 to quantitatively measure the degree of disparity in income distribution.

    Its economic implication is: the percentage of the total inhabitant income that is used for unequal distribution.

    The minimum Gini coefficient is equal to 0, which indicates that the income distribution is absolutely equal; The maximum is equal to 1, indicating that the income distribution is absolutely unequal; The actual Gini coefficient is between 0 and 1. If personal income tax equalizes income, the Gini coefficient will be smaller.

    The relevant organizations of the United Nations stipulate that if it is lower than the average income of the high degree; Indicates that it is relatively average; The representation is relatively reasonable; indicates a large income gap; The above indicates a wide disparity in income.

    In 2010, two Xinhua researchers pointed out that China's Gini coefficient had actually been exceeded. According to data released today by the China Household Finance Survey of the Southwestern University of Finance and Economics in Beijing, the Gini coefficient of Chinese households in 2010 was much higher than the global average.

  7. Anonymous users2024-01-30

    The Gini coefficient is a general international indicator, which is mainly used to measure the income gap between residents in a country or region.

    The Gini coefficient is an indicator of the income gap between real income and absolute income, also known as the Lorenz coefficient, which is calculated by dividing the area a between the real income distribution curve and the absolute equality curve of income distribution by the area at the bottom right of the absolute equality curve. <>

    Extended information: the Gini coefficient meets the range of the Gini coefficient is 0-1, the larger the Gini coefficient indicates that the income gap is larger, and the Gini coefficient is too large or too small is not conducive to the development of a society, the Gini coefficient is less than indicating that the income of residents is too average, and the enthusiasm of individuals will be weakened, thereby slowing down the speed of social development, and the Gini coefficient is greater than the income gap between residents is very large, which can easily cause social instability and may even lead to the collapse of the population.

    There are many factors that affect the Gini coefficient of a country, including the level of economic development, political system, social culture, etc., of which political policies occupy a large part.

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