Italians do it better (the MBA)

Sunday, November 12, 2006

Gini Coefficient

I was googling around to look for some let's call it "inspiration" for a final report of en exam on economics, when i stepped into the Gini Coefficient! The Gini coefficient is interesting first of all because it has the same surname as a good old friend of mine. But if this is not enough, it is interesting also because it is used to measure wealth inequality. I've found a very easy explanation of the Gini coefficient on, guess what, wikipedia. Check it. Just want to report the graph that shows the path of this coefficient for some countries. A coefficient close to 1 means lot of inequality.. the more you are close to 1 the more the curve that relates share of wealth and percentage of population gets closer to the shape of the "capacity/queue". Clearly the gini curve doesn't tell the whole story of inequality and it's measure because for example a wide country tends to have a higher coefficient than a small one. But still is considered a reasonable measure of inequality. Interesting to notice how US is growing while many european countries are decreasing. The US high inequality attracted many people in the past and is still attracting many people.. the ones that are self confident, that want to risk, the one that want to fight for the right side of the curve. Europe is more attractive for the ones who fear the left side. But it also attract people who want to stay on the right but can't cope with inequality and don't want to stay on top of a peak with a high cliff behind them.

8 Comments:

Blogger Catalonic said...

Hey Georgie Boy, can you write another posting titled: Gini Coefficient for Retards where you basically say the exact same thing, but in a way that an idiot like me can better understand?
Thanks buddy, nice talk.

3:20 PM

 
Blogger Marcusrodri said...

George, Catalonic is very distracted lately and unable to catch up with economics (Too much climbing). I asked my grandmother to read your post. She understood everything easily and then asked...who is that nerd?

5:37 PM

 
Blogger Catalonic said...

Your Grandmother must speak George then, becuase despite the number of times I read the last two sentences, i just can't get my head around the analogy.
But I love the Coefficient. My goal is to personally steepen the US curve as much as possible. Maybe to the point of 1, with me being the one.

4:09 AM

 
Blogger Marcusrodri said...

ok lets face it, I can't understand the last two sentences either. I think my grandmother is a liar. I will support catalonic's objective from Brazil (less work to do).

8:02 AM

 
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