regression model to compare cross-country regressions. Literature Survey Economic Growth and Income Inequality by Simon Kuznets (1955) was one of the initial papers theorizing the long-term effect of inco... ... middle of paper ... ...between the gini coefficient and growth rate of Developing countries is -3.789 with a P-value of .398 and R squared of .132 and .103. Interpreting the statistical significance of the data, the p-values both hold a significance level greater than 0.05, thus we do not reject
VI. Annex i) Global Gini Coefficients from the World Bank: Table 1 Low Income Countries Gini coefficient High Income Countries Gini coefficient Latin American Countries Gini coefficient China 1.6 Australia 1.7 Argentina 2.8 Egypt 1.3 Belgium 1 Bolivia 3.6 India 1.4 Canada 1.4 Brazil 5.6 Ivory Coast 1.6 France 2.1 Chile 4.4 Kenya 4.7 Germany 1.3 Costa Rica 2.5 Madagascar 2.2 Italy 1.4 Ecuador 4.9 Nigeria 2.4 Japan 1 El Salvador 3.5 Pakistan 1.2 New Zealand 1.8 Mexico 4.4 Sri Lanka 1.1 Spain 1 Panama
Measures of Market Concentration Market concentration describes the extent to which the top firms in an industry, say in the car industry where the top five firms in the UK would account for nearly 90% of the market, take up a large portion of the market share. There are various methods used to measure this, which will be discussed in turn. ‘The concentration ratio is the percentage of all sales contributed by the leading three or five, say, firms in a market.’ (Maunder, P. et al (1991)
in Egyptian society; it is one of the few places where you can find luxurious, five-star hotels right next poverty-stricken slums and since the revolution the problem of inequality has been a hot topic in Egyptian society and politics. Egypt’s Gini coefficient, which is the most commonly used measure of income inequality, stands at around 30.7 (World Bank 2009). Inequality is seen as limiting to both Egypt’s potential economic growth and to the desired reduction in poverty. Agricultural economics
of Living. Works Cited EconGuru Economics Guide - Circular Flow of Income Diagram (Online) http://www.econguru.com/wp-content/uploads/2009/01/circular-flow-of-income.png Accessed 10/03/10 CIA World Factbook - Distribution of family income - Gini index (Online) https://www.cia.gov/library/publications/the-world-factbook/fields/2172.html Accessed 10/03/10 International Monetary Fund – Economic Issues No. 30 (Online) (http://www.imf.org/external/pubs/ft/issues/issues30/index.htm Accessed
economic gap has always exceeded the average of the euro partners, at least from the start of Eurostat statistical series in 1995. It was stable, until the crisis aggressively attacked the economy and the gap began to grow five years ago. The GINI coefficient, which measures the difference in income of a country, is a clear example of that change. If the statistics shows a zero means that in that country there exists perfect equality, if it shows a 100 would mean an absolute inequality. Spain pulled
the cumulative percentage of income or wealth against the cumulative percentage of households or individuals, the more the Lorenz curve deviates from the diagonal, the greater is the income inequality. Inequality can also be measured by the Gini coefficient which is a numerical value for comparing inequality, ranging from zero for perfect equality to one for perfect inequality. Most governments aim to limit the level of Inequality in income and wealth, however there are some economic benefits from
has some of the worst inequality. When looking at poverty levels, income gaps, and wealth owned by the rich, sources show the U.S. always scores poorly compared to other developed countries. When measuring inequality, researchers use the gini coefficient, where 0 means that everyone has the same income and 1 means that one person has all the income. According to evidence presented by the online database OECD.org, when looking at inequality of disposable income the U.S. scores fourth out of all
decision would be made. A country makes the decision on what to produce is accordance to the income distribution. The most ideal case is to have perfect income equality (Gini Coefficient equal to 0) in one society. However, studies tell us that this can never be reached. In most of the more developed countries, a Gini Coefficient (G.C.) of 0.2 to 0.35 is considered to be in relative equality. One may wonder what is the G.C. in the less developed countries? The answer is assumed to be a number in the
What is wealth inequality? “It is the difference between individuals or populations in the distribution of assets, wealth or income.” [1] In sociology, the term is social stratification and refers to “a system of structured social inequality” [2] where the inequality might be in power, resources, social standing/class or perceived worth. In the US, where a class system exist, (as opposed to caste or estate system) your place in the class system can be determined by your personal achievements. However
As these economic reforms led to China's accelerating economic growth, they also led to increasing political and economic decentralization where local regional governments made economic decisions, used tax revenue for local projects and received less financial support from the central government(Goldman & Mcfarquhar 2000, p.8). As explained by social scientist Gordan White, he characterized the social changes in post-Mao economic reforms as 'fragmented and fragmenting' (Goldman & Mcfarquhar 2000
George Shaw once said, “The greatest evils and the worst of crimes is poverty; our first duty, a duty to which every other consideration should be sacrificed, is not to be poor.” Poverty isn't something diminishing as years go by, in fact in just 2015 43.1 million United State citizens were struck by poverty and is turning towns upside down (UC pg.1). One town that has surrendered themselves to poverty is Altoona, Pennsylvania, a recent small pocket pop uptown that is struggling recover from job
Time is Money A plethora of research studies exist on the topic of wealth inequality in America. There is no question that the top one percent of earners consume a large portion of wealth in this country while the other 90 percent of earners share the left-overs. Some of the related questions that I found during the course of my research are 1) Why are wealth and income distributions so vastly disproportionate? 2) Can America bridge the wealth gap? 3) If so, how? 4) Has the wealth gap increased
When I think of Social Welfare, the ideology of Liberalism appears in my head. Not only just the freedom of individuals is important, but the freedom and opportunity to succeed in anything and everything is important. While there is great competition in our economy today, there is also equal opportunity for everyone to thrive and be successful, but nothing can be awarded or given away for free. Personal merits people achieve such as through ones education or promotions in work are the basis of individual
Globalization, which is specifically the expansion of trade, encourages worldwide consumption and makes the world become a ‘global village’ (Chanda, 2007). However, it also leads to many serious environmental and social problems such as the collapse in biodiversity, climate change, financial crisis and inequality (Goldin, 2009). Among all the problems, income inequality is the most serious one and two widely used methods to soften its impacts are raising the minimum wage and taxing the rich. Although
According to the Declaration of Independence, Thomas Jefferson stated that, “all men are created equal.” It signifies that all men are equally endowed with rights to life, liberty, and the pursuit of happiness. However, every human being’s life is equal in value. It does not matter how old, young, poor, or weak a person may be. No one should be excluded from the opportunities to contribute to society and live life freely. Every human being’s life is just as worthy of respect as any other, but our
Lorenz in 1905. The Lorenz curve is usually in a form of graph on which the cumulative proportion of income is plotted against the cumulative proportion of population on the in which their axes ranges from [zero (0) to one (1)] or [0% to 100%]. The Gini index, another method of measuring inequality is derived from the Lorenz curve. The Lorenz curve is shown in the graphical illustration (figure 1) below. The first calculation of inequality across world citizens were done in the early 1980s (Berry
INEQUALITY: CAUSE AND CONSEQUENCES In the United States the land of equal opportunity one might be surprised to find a great deal of economic disparity. Research on the topic was not extensive until a rise in economic disparities over the past thirty years grabbed researcher’s attention. This research would reveal that economic inequality was not just some random conclusion, but legitimate cause and patterns of these causes could be traced It would also uncover the consequences economic inequality
Over the last two decades the Australian population has faced a number of economic instabilities that has seen the gap between the ‘haves’ and ‘have nots’ increase. To determine who the ‘haves’ and ‘have nots’ are an in-depth investigation will be performed examining the circumstances under which the gap can be manipulated. The economic wellbeing of individuals is largely determined by their command over economic resources (ABS, 2009). The wellbeing of individuals who are classified as ‘haves’ are
produces interesting patterns. One such pattern is in Pascal’s Triangle, where each row can be constructed by adding the numbers on the row above. This particular pattern is significant in that, among other things, it shows a representation of the coefficients of a binomial expansion to a particular power. There is always room in mathematics, however, for imagination, for expansion of previous concepts. In the case of Pascal’s Triangle, a two-dimensional pattern, it can be extended into a third dimension