Y2/IB 6) Measures of Development - Lorenz Curve and Gini Coefficient (Income Inequality)

A2/IB 6) Measures of Development - Lorenz Curve and Gini Coefficient (Income Inequality) - An understanding of the Lorenz Curve and Gini Coefficient to measure income inequality and thus measure development progress of a given economy

[martinlink]

Thanks for the vid! You mentioned the Gini coefficient is always between 0 and 1, but according to Milanovic it maximum value depends on the level of income per capita in the society, and it is always lower than 1. Could you explain this?

[donnasarkar]

How do u get the numerical value of the numerator in formula for gini coeficient from the Lorenz curve?

[andreascandido]

should this not also be under the a2 microeconomics playlist?

[conordevlin]

Surely this is almost a pointless measure of development as income inequality is always going to be a feature of a capitalist economy and we should focus on poverty instead to measure development. As what’s the point in having perfect equality if everyone is poor. Surely the best measure is to look at absolute and relative poverty rates and work that way to make the economy more developed