Reflect on the data, explain and interpret the Gini coefficient
Problem 5
Visit Thomas Piketty’s website or Fredrick Solt’s website for Income inequality data sets. Draw out a time series picture of the income inequality data pertaining to YOUR country.
a. Reflect on the data, explain and interpret the Gini coefficient, disposable income and market income as applicable over time (You can define the timeline according to the available time series data).
b. Identify and explain the economic and non-economic reasons in your country that could explain income inequality over time.
Hint
Accounts & Financehousehold incomes vary from one household to another. the Gini coefficient measures the spread of household incomes across all households. the Gini coefficient varies between the values of 0 and 1. the Gini coefficient is 0 when the Lorenz curve coincides with a perfect equality line which reflects perfect equality. as the Lorenz curve moves further away from the perfect equa...
household incomes vary from one household to another. the Gini coefficient measures the spread of household incomes across all households. the Gini coefficient varies between the values of 0 and 1. the Gini coefficient is 0 when the Lorenz curve coincides with a perfect equality line which reflects perfect equality. as the Lorenz curve moves further away from the perfect equality line the Gini coefficient increases reflecting greater an even spread of household incomes and subsequently greater income inequality.
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