Question

What is the Gini index? Explain and discuss its theoretical properties.

What is the Gini index? Explain and discuss its theoretical properties.

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Answer #1

If we talk in simple terms then Gini coefficient or Gini ratio in simple terms is the measure of income inequality or wealth inequality in a nation of different income groups of people

it value varies from 0 to 100%

value near to 0% represent inequality of income and value closer to hundred percent represents very high inequality of income in the economy

it shapes of a banana size

the more the size of a banana, the bigger income inequality is there in the country

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