What is the Gini coefficient? What is the Gini coefficient

The Gini coefficient is an important analytical index used in the world to comprehensively examine the difference in income distribution among residents, which was proposed by Italian economists in 1922. The economic implication is that the portion of the total income that is used for unequal distribution of the total income of the population is the percentage of the total income.

The Gini coefficient is equal to "0" at the maximum and "0" at the minimum. The former indicates that the income distribution among the inhabitants is absolutely unequal, that is, 100% of the income is occupied by a unit of people; The latter, on the other hand, means that the income distribution among residents is absolutely equal, that is, the income between people is completely equal without any difference. However, these two situations are only absolute forms in theory, and generally do not appear in practical life.

Therefore, the actual value of the Gini coefficient can only be between 0 and 1.

At present, there are many methods and indicators used in the international community to analyze and reflect the disparity in income distribution among residents. The Gini coefficient is widely recognized and widely adopted by all countries in the world because it gives a quantitative boundary that reflects the degree of disparity between the rich and the poor among residents, can objectively and intuitively reflect and monitor the gap between the rich and the poor, and forecast, warn and prevent the polarization between the rich and the poor among residents.

According to international practice, the Gini coefficient below 0 2 indicates that the income distribution among residents is "highly average", between 0 2 0 3 means "relatively average", and between 0 3 0 4 is "relatively reasonable".

The Gini coefficient is a measure of the gap between rich and poor in a country.

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.

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.

The Gini coefficient is a measure of income disparity between people in economics.

The Gini coefficient (English: gini index, gini coefficient) refers to the commonly used indicators used internationally to measure the income gap of residents in a country or region.

The coefficient value is 0 - the absolute average of income, and 1 is the absolute unequal income. Values above the international warning line are generally considered to indicate a wide gap between the rich and the poor. It was named after the Italian economist Corrado Gini who first proposed it.

NEED NOTICE:

In addition to the Income Gini coefficient, there is also a Wealth Gini coefficient. The approximate algorithm is the same as the income Gini coefficient, except that the data of the income Gini coefficient is from the household income statistics of a certain region, and the data of the wealth Gini coefficient is from the statistics of total household assets of a certain region.

The Gini coefficient is equal to "0" at the maximum and "0" at the minimum. The closer the Gini coefficient is to 0, the more egalitarian the income distribution. There is no international organization or textbook that gives the most suitable standard for the Gini coefficient.

However, many people believe that when the Gini coefficient is small, the income of residents is too average, the time is more average, the time is more reasonable, the time gap is too large, and the time gap is greater than the time gap is huge.