Gini coefficient-what is the gini coefficient?
Gini coefficient, or the translation of the Gini Coefficient. Gini coefficient Gini early 20th century Italian economist, defined according to Lao Lunci curve to determine the fairness of income distribution indicators. Gini coefficient is a ratio of values between 0 and 1, is used on a comprehensive survey of residents in the international distribution of income differences within the state is an important indicator.
Gini coefficient of economic implications:In all income, used to be that part of the uneven distribution of the percentage of total revenue. Gini coefficient up to "1", the minimum is equal to "0." The former indicates the distribution of income among residents is absolutely not the average, 100% of income is a person full possession of the unit; while the latter indicates the distribution of income among residents in the mean absolute, income that is full equality between people, not any difference. But neither of these cases is only in theory, absolute form, in real life usually does not appear. Therefore, the actual value of the Gini coefficient can range from 0 to 1. Currently, to analyze and reflect on the international income distribution gap of many methods and indicators. As reflected in the Gini coefficient shows the extent of differences between rich and poor residents in the number of boundaries, can be more objective, and directly reflects the gap between rich and poor residents in monitoring, forecasting, early warning and to prevent residents of the polarization between rich and poor, so been widely recognized around the world and widely used.Gini coefficient segment classification:Gini coefficient, in accordance with the provisions of relevant United Nations organizations:Lower than the 0.2 average absolute income0.2-0.3 compare the average income0.3-0.4 relatively reasonable income0.4-0.5 income gapThan 0.5 income gapEconomists often use the Gini index to represent a country and regional distribution of wealth. This index is between zero and one, the lower the number, indicating that the wealth distribution among the members of society more uniform; and vice versa.
Usually the income gap of 0.4 as a "warning", according to the golden rule, and its exact value should be 0.382. Developed countries in general the Gini index 0.24 to 0.36, the U.S. high as 0.4. Gini coefficient in China more than 0.5 in 2010, has entered the ranks of income disparity of wealth distribution is very uneven. Lorenz curve (Lorenz curve), also translated as "Lorenz curve." That is, in an overall (national, regional) in order to "population from the poorest to the richest people has been" the percentage of the population corresponds to the percentage of the population of the various percentage points of revenue curve. In order to study the income distribution among citizens, American statistician (or the Austrian statistician) MO Lorenz (Max Otto Lorenz ,1876-1959) 1905, proposed the famous Lorenz curve.
The international community used the Gini coefficient of income distribution of quantitative determination of the degree of difference. Less than 0.2 indicates that the income Gini coefficient is too fair; and 0.4 is the uneven distribution of social security line, so the Gini coefficient should be maintained at between 0.2 and 0.4, less than 0.2 social dynamics; higher than 0.4, social unrest.
Gini coefficient pass algorithm:
According to Lorenz curve Gini's index to determine the degree of equality of distribution. Distribution curve based on actual income and income distribution curve of absolute equality between the area A, the actual income distribution curve the lower right area of B. And to A divided by (AB) of the business that inequality. This value is called the Gini coefficient or said Lorenz factor. If A is zero, the Gini coefficient of zero, indicating complete equality of income distribution; if B is zero then the coefficient is 1, the absolute inequality in income distribution. Trends in income distribution more equal, the smaller the curvature of the Lorenz curve, Gini coefficient is also smaller, on the contrary, tend more unequal income distribution, the greater curvature of the Lorenz curve, then the Gini coefficient is also greater. In addition, you can see the Pareto index (refers to the degree of uneven income distribution measure).
