This explanation is really good and straight forward, you really know how to explain and teach complicated material to someone new to economics!! Thanks!!
I love your videos so much they really do help...always watch them when I need a quick simple reminder, even now doing degree level economics. Keep up the good work pal!
Thanks very much. I have admired this lecturer's grasp of the material and his superior ability to pass it on, especially to me who usually finds Economics very beautiful but equally hard. Excellent lecturer. Thanks again for sharing. Much obliged.
Spectacular! I just cam across gini in my data mining work and have been looking around online. Trying to understand it by reading about it is quite difficult, but it makes great sense when you explain it. Thanks for posting such a clear description.
Hi Phil ,I am in Indonesia and teaching economics. thank you so much for all of your videos on economics , all are helpful. Can we have few on developing countries.Thanx
Second comment: I wish that the Gini coefficient would come up in American presidential debates! We should set a Gini target of 0.40, which would be almost as equal as we were before the Reagan administration (I believe the current Gini is around 0.47).
If you call the area below the lorenz curve 'b', then the formula for the gini coeficient is: a / (a+b). Note this is actualy for the IB syllabus but I thought its an easier way to remember the formula. Anyways thank you for the video it did explain everything very well =).
Thank you for explaining the concept of the curve nicely. I have one query that is it possible to have curve above the 45 degree or line of equality? If it is possible then how we can interpret it?
what does the Lorenz Curve (a) and (b) shows about the distribution of household income among the top 20% of the households and the lowest 20% of households?
So the Lorenz curve showing the production rate wrt the Economic growth may be a high factor in these countrys qualitative analysis of residual developmemt.
the perfect diagonal curve shows the share of income between a perfectly equal society/economy. I.e. Each 20% earn 20% of income. A highly unrealistic idea which would need a perfectly competitive labour market. However, a good concept to make comparisons with, to emphasise how unequal some economies are.
Teame Gebremedhin if by deviation you mean the gini coefficient then its the area in between the curve and the line of 45 deg DIVIDED by the whole triangle (the area under the line of 45 deg) if that makes sense :)
Where do I get the latest Gini Coefficient? Christ I've been looking for the past hour it seems there is always only one country shown, is there a way to get all the countries gini and years?
I have one question here... as the main criticism of the gini index is the use of gross income, then why isn't it based on net income? And isn't there a model that includes transfer payments, too?
Hey dude, thanks for all your awesome videos! Just a quick thing regarding the pronunciation of 'Gini' though. Since he is Italian, to be pronounced with a hard G as you do, his name would have to be spelled 'Ghini'. Since there is no H, 'Gini' is pronounced with a soft G, as in 'giant'. Just a minor thing, but keep up the good work!
If the poorest 20% gets like 5% of the national income, does that mean that 20% of the total households get a share of 5% of national income between them? Or 20% of the total households get 5% of the national income each? And um if 5% of the national income is already taken up by 20% of the population how can it still be included in the 75% recieved by 80% of the population? ( Not sure if I remembered the figures correctly) I know its something to do with how the figures are cumulative... Sorry if I'm confusing anyone because I am confused myself. Don't know if I'm overthinking it but if someone could explain these questions to me I would greatly appreciate it! >
Beatrice Angkana Chawalitnititham If 20% of the poorest attain 5% of the nations income they receive a divided amount of 5% between themselves. For example if that 5% is say 5 billion then that 20% gets a share of that 5 billion they do not get 5 billion each. to answer your second question picture a circle pie, if you eat 1/4 of the pie put it in the fridge and then eat another 1/4 you have not only eaten 1/4 but 1/2. This is the same principle, 20% of the population can still be counted towards 80% if the population however the amount that each quartile receives is divided accordingly. For example say you have the pie again, you have your self and 3 other friends so 4 people in total. You divide the pie into segments, one friend gets 10% another 20% another 30% and the final person (you) gets 50%. At the end of the day their is still 100% if the pie it is just broken up. hope this helps best of luck
80/20 is not a rule in a sense that it is not what must happen. It just states that 80% of income goes to the top 20%. a coefficient of 0 would not be practical but you have to understand that the aim of the gini coefficient isn't to promote perfect equality. It is to measure the distribution of income. governments use it to analyze where income is going and to redistribute income to how they see fit.
can anyone help on how to do a lorenz curve for age inequality?? in step by step instructions? i can only find about income inequality and i don't know what data to select instead for age
Thanks, nice presentation. There is something odd about this measurement ... I'd like to see someone do a video like this with several example populations to show how this works ... say, 100 people where all have equal income, or where 1 person has all the income - show me where these people are, because thought I understand the math and enjoyed the presentation, something is not right in this.
Could anyone explain how to calculate this god damn A area? I am looking for that video, but everyone only trow that crap like A divided A+B, great how do I calculate the A first? It is not a Triangle, since the kurve is bent.
watch jodiecongirl! she said since we dont know the equation of LorenzCurve , we cant calculate those areas. so most likely those areas would be given to us.
nikolai zaicev if you had the two equations you could take the integral of both and subtract them, but I doubt they would make you do calculus on a microeconomics test. They would probably provide you with the area.
If in a society, half population earns 100 dollars per day and the other half earns 200$ per day, the Gini's Coeff of inequality for this society will be what??? Please help
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Thank you!! Professors like yourself are so under valued. Thanks for explaining with clarity and detail!
I love that he didn't edit out the part where he messed up, great work m8 from the U S of A
how many of yall here from jacob clifford
This explanation is really good and straight forward, you really know how to explain and teach complicated material to someone new to economics!! Thanks!!
Great explanation of the Lorenz Curve and the Gini Coffecient. Thank you for the explanation!
This bloke's a fucking champion
I love your videos so much they really do help...always watch them when I need a quick simple reminder, even now doing degree level economics.
Keep up the good work pal!
Great video! Thank you for making it so much clearer than the textbooks do.
you've rescued me before most horrible maths exam, thanks very much
Thanks very much. I have admired this lecturer's grasp of the material and his superior ability to pass it on, especially to me who usually finds Economics very beautiful but equally hard. Excellent lecturer. Thanks again for sharing. Much obliged.
thank u sir sincere regards. wish that our uni have teachers like u
Videos on TH-cam teach me so much more than actual teachers at school
Spectacular! I just cam across gini in my data mining work and have been looking around online. Trying to understand it by reading about it is quite difficult, but it makes great sense when you explain it. Thanks for posting such a clear description.
Hi Phil ,I am in Indonesia and teaching economics. thank you so much for all of your videos on economics , all are helpful. Can we have few on developing countries.Thanx
So easy to follow and I now get it! Thanx so much!
Thank you for your kind help. Cheers from Ecuador.
Fantastic Talk - Clear and concise, brilliant thanks a lot!
Helped me study for my econ final exam! Thanks!
thank you so much for this! Explained very well.
great explanation. helped me out loads. thank you
Best lecture for Lorentz curve and finish coefficient
Thanks for the video. Great explanation.
this was very helpful. Thank you so much.
good job on the explination, I am taking an exam tomorrow morning, so this really helps. Thanks
my favourite economics teacher:)
Second comment: I wish that the Gini coefficient would come up in American presidential debates! We should set a Gini target of 0.40, which would be almost as equal as we were before the Reagan administration (I believe the current Gini is around 0.47).
Thanks Phil. Great video, very clear and helpful.
Thanks, I am learning though distance education with no teacher and your videos are invaluable to me. from Australia. =DD.
If you call the area below the lorenz curve 'b', then the formula for the gini coeficient is: a / (a+b). Note this is actualy for the IB syllabus but I thought its an easier way to remember the formula.
Anyways thank you for the video it did explain everything very well =).
Thank you for explaining the concept of the curve nicely. I have one query that is it possible to have curve above the 45 degree or line of equality? If it is possible then how we can interpret it?
So simple and explaining..... THANKYOU SO MUCH....
Thanks phil....... Very helpful.
Thanks for clearing that up. Pretty simple and clear explanation.
gr8 explanation m8, i congratul8 u and rate 8/8
R8*
+Swiizzey u wot m8?
Thank you very much, tottally saved my ass on my math assignment.
Excellent explanation, very helpful!
essay due in 5 hours...this has saved me!
@@jonathannoeldavisorellana556 bro it was 8 years ago
@@sf5005 Still waiting though
Great video! However how do you calculate the area between the 45 Degree line and the LC ?
Great video
what does the Lorenz Curve (a) and (b) shows about the distribution of household income among the top 20% of the households and the lowest 20% of households?
So the Lorenz curve showing the production rate wrt the Economic growth may be a high factor in these countrys qualitative analysis of residual developmemt.
the perfect diagonal curve shows the share of income between a perfectly equal society/economy.
I.e. Each 20% earn 20% of income.
A highly unrealistic idea which would need a perfectly competitive labour market. However, a good concept to make comparisons with, to emphasise how unequal some economies are.
Thank you for your outstanding presentation.But how do we measure the deviation of loren's curve from the 45 deg?
Teame Gebremedhin if by deviation you mean the gini coefficient then its the area in between the curve and the line of 45 deg DIVIDED by the whole triangle (the area under the line of 45 deg) if that makes sense :)
thanx... really helpful... u the man...
may god bless you and your family x
Thanks! That really helped to understand it better!
thanks for your explanation, this is really helpful! :) I hope that you could do more..
Where do I get the latest Gini Coefficient? Christ I've been looking for the past hour it seems there is always only one country shown, is there a way to get all the countries gini and years?
so what would be the role of the diagonal in the depiction of income inequaliity?
Great job!
Nice video easy to understand
I have one question here... as the main criticism of the gini index is the use of gross income, then why isn't it based on net income? And isn't there a model that includes transfer payments, too?
Does the mechanism work the other way around, in terms of economic growth. The question being: Can a very non equal country expect larger growth?
Came back to this after some time
Thank you so much for this really informing Video :)
Very useful. Thank you!
Hey dude, thanks for all your awesome videos! Just a quick thing regarding the pronunciation of 'Gini' though. Since he is Italian, to be pronounced with a hard G as you do, his name would have to be spelled 'Ghini'. Since there is no H, 'Gini' is pronounced with a soft G, as in 'giant'. Just a minor thing, but keep up the good work!
Thanks this helps! Clear presentation of the concept :)
THANK YOU SO MUCH FOR HELPING MUCH! your expiation is awesome ;D
Thank you very much!
this has helped me soo much!! THANKS :D
Thank you sooo much for the explanation
Why does the lorenz curve can not lie above the diagonal (45 degrees) line?
+Dimitar Ivanov the bottom 20% can't have more income than anyone else
thank you so much!!!! this was excellent!!
very helpful thank you..
thanks, it helped a lot!
With LSE? I'm doing my Economics degree with London via independent study. It's tough but worth the effort. Good luck mate.
very useful thanks!
thank you so much sir,
Very helpful
phil, write a book or make a dvd...i'll buy it
Thank you, Sir!
Thank you sooo much!
very helpful
If the poorest 20% gets like 5% of the national income, does that mean that 20% of the total households get a share of 5% of national income between them? Or 20% of the total households get 5% of the national income each? And um if 5% of the national income is already taken up by 20% of the population how can it still be included in the 75% recieved by 80% of the population? ( Not sure if I remembered the figures correctly) I know its something to do with how the figures are cumulative...
Sorry if I'm confusing anyone because I am confused myself. Don't know if I'm overthinking it but if someone could explain these questions to me I would greatly appreciate it! >
Beatrice Angkana Chawalitnititham
If 20% of the poorest attain 5% of the nations income they receive a divided amount of 5% between themselves. For example if that 5% is say 5 billion then that 20% gets a share of that 5 billion they do not get 5 billion each.
to answer your second question picture a circle pie, if you eat 1/4 of the pie put it in the fridge and then eat another 1/4 you have not only eaten 1/4 but 1/2. This is the same principle, 20% of the population can still be counted towards 80% if the population however the amount that each quartile receives is divided accordingly. For example say you have the pie again, you have your self and 3 other friends so 4 people in total. You divide the pie into segments, one friend gets 10% another 20% another 30% and the final person (you) gets 50%. At the end of the day their is still 100% if the pie it is just broken up.
hope this helps best of luck
Thank you!
80/20 is not a rule in a sense that it is not what must happen. It just states that 80% of income goes to the top 20%. a coefficient of 0 would not be practical but you have to understand that the aim of the gini coefficient isn't to promote perfect equality. It is to measure the distribution of income. governments use it to analyze where income is going and to redistribute income to how they see fit.
can anyone help on how to do a lorenz curve for age inequality?? in step by step instructions? i can only find about income inequality and i don't know what data to select instead for age
The craziest part is, my name is Gini. And I was not impressed with the fact that I didn't even understand my own coefficient.
the advertising was a very well implemented fact about economic sufficiencies when there is destructions.
this is great, thank you :)
he should get a nobel prize or atleast a knighthood
if you search in wikipedia, it's awful describtion and it is messed up
thx for video!
thank you so much!
Thanks, nice presentation.
There is something odd about this measurement ... I'd like to see someone do a video like this with several example populations to show how this works ... say, 100 people where all have equal income, or where 1 person has all the income - show me where these people are, because thought I understand the math and enjoyed the presentation, something is not right in this.
thanks. that was great!
Could anyone explain how to calculate this god damn A area? I am looking for that video, but everyone only trow that crap like A divided A+B, great how do I calculate the A first? It is not a Triangle, since the kurve is bent.
watch jodiecongirl! she said since we dont know the equation of LorenzCurve , we cant calculate those areas. so most likely those areas would be given to us.
nikolai zaicev if you had the two equations you could take the integral of both and subtract them, but I doubt they would make you do calculus on a microeconomics test. They would probably provide you with the area.
Thanks a mill.
thanks sir
cheers dude!
omg thank you! I finally get now
cheers Phill
Nice !
If in a society, half population earns 100 dollars per day and the other half earns 200$ per day, the Gini's Coeff of inequality for this society will be what??? Please help
if i could pay this guy i would
thanks
Thanks :)
thx!
and thats why you're watching economic instructors online.
thank you rasek ki rokba