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The Gini coefficient is an indicator of the fairness of income distribution defined by the Italian economist Gini in the early 20th century according to the Lorenz curve. is a proportional value, between 0 and 1. The gini index is a percentage table of gini coefficient multiplied by 100 times.
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. And divide a by the quotient of a + b to indicate the degree of inequality. This value is known as the "Gini coefficient" or "Lorenz coefficient".
If a is zero, i.e., the Gini coefficient is zero, it means that the income distribution is completely equal (the red line and the green line form a line); If b is zero, the coefficient is 1 and the income distribution is absolutely unequal (the red line is above the blue line). The coefficient can take any value between zero and 1. The more equal the income distribution, the smaller the arc of the Lorenz curve (the more it becomes 45 degrees), the smaller the Gini coefficient, and conversely, the more unequal the income distribution, the greater the arc of the Lorenz curve, the greater the Gini coefficient.
If tax adjustments (e.g., through personal income tax) equalize income, then the Gini coefficient becomes smaller.
As long as there is a Lorenz curve chart, the Gini coefficient can be found in one formula.
The relevant organizations of the United Nations stipulate that:
If it is lower than the absolute average income;
Indicates that it is relatively average;
The representation is relatively reasonable;
indicates a large income gap;
The above indicates a wide disparity in income.
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Gini coefficient, in accordance with the regulations of the relevant United Nations organizations:
If it is lower than the absolute average income;
Indicates that it is relatively average;
The representation is relatively reasonable;
indicates a large income gap;
The above indicates a wide disparity in income.
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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.
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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.
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In 2010, for example, China's Gini coefficient was.
According to data from the China Household Finance Survey Center of Southwestern University of Finance and Economics, the Gini coefficient of China's household income in 2010 was the Gini coefficient within urban households and the Gini coefficient within rural households.
This series of data shows that the gap between the rich and the poor is too large whether it is viewed from the perspective of the whole country, urban and rural areas. According to the regional division, the Gini coefficient of the eastern region is, the Gini coefficient of the central region is, and the Gini coefficient of the western region is. It can be seen that the income gap between the eastern, central, and western regions is closely related to the degree of development of the market economy.
Gini coefficient:
The Gini coefficient refers to the commonly used index to measure the income gap of residents in a country or 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.
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Both the Lorens curve and the Gini coefficient are indicators of the fairness of social distribution, while the Gini coefficient is derived from the Lorens curve.
Among them, the Lorens curve refers to the Qupei number line formed by the percentage of income and the percentage of people matching the first mouth; The Lorens curve divides the lower part of the diagonal ridge of the square diagram into two blocks, a and b, and adds a to b and divides a to obtain the value of the Gini coefficient.
The smaller the radian of the Lorenz curve, the smaller the Gini coefficient.
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Gini coefficient:Meaning the more evenly distributed income.
The actual value of the Gini coefficient can only be between 0 1, with the smaller the Gini coefficient being more evenly distributed and the larger the Gini coefficient, the more uneven the income distribution. It is usually regarded as the gap between rich and poor.
The warning line is more than this value, and social unrest is likely to occur.
In accordance with the regulations of the relevant United Nations organizations:
If it is lower than the absolute average income;
Indicates that it is relatively average;
The representation is relatively reasonable;
indicates a large income gap;
The above indicates a wide disparity in income.
The current state of the Gini coefficient in China
Since the reform and opening up, while China's economic growth has been growing, the gap between the rich and the poor has gradually widened, and it is an indisputable fact that the Gini coefficient has crossed the warning line in terms of the income of all types of residents.
China's Gini coefficient has crossed and reached the National Bureau of Statistics.
published data). The gap between the rich and the poor in Chinese society has broken through reasonable limits, with the lowest-income 20 percent of the total population accounting for only 50 percent of the total income, while the top 20 percent of the total population has a whopping 50 percent of the total income.
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