What is the method of measuring inequality?
Gini index
It is the most widely cited measure of inequality; it measures the extent to which the distribution within an economy deviates from a perfectly equal distribution.
The index is computed as the ratio of the area between the two curves (Lorenz curve and 45-degree line) to the area beneath the 45-degree line.What are the 4 measures of inequality?
Economists use various metrics for measuring income inequality.
Here, the most commonly used measures—the Lorenz curve, the Gini coefficient, decile ratios, the Palma ratio, and the Theil index—are discussed in relation to their benefits and limitations.What are the 4 principles of inequality?
The Four criterion of Inequality Measurement Anonymity, Relative Income, Population, and Dalton - YouTube.
- Inequality is not necessarily an easy concept to quantify.
The most commonly used measure is the Gini coefficient, which looks across the whole population.
The Gini index is calculated as the ratio of the area between the perfect equality line and the Lorenz curve (A) divided by the total area under the perfect equality line (A + B).
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