GGR112H1 Lecture Notes - Lecture 3: Gross Domestic Product, Gross National Income, Gini Coefficient
27 Sep 2017
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Document Summary
Poverty line minimum income needed to live a decent life. Poverty rate ratio or % of population living below the poverty line. Purchasing power parity - phantom exchange rate calculated on cost of living in each country. Gini coefficient measure of inequality based on statistical distribution of income. 1 = perfect inequality (sometimes expressed as %) Quintile divide population into 5 groups, ranked by given attribute. Decile divide population into 10 groups, ranked by given attribute. Bottom 10% of income earners to top 10% of income earners. Percentile divide population into 100 groups, ranked by given attribute. Ratio can be expressed in ratio of top to bottom. Bottom 20% of income earners to top 20% of income earners; give ratio of two. Bottom 1% of income earners to top 1% of income earners: ex. Wealth inequality is always higher than income inequality. Gross domestic product (gdp) total value produced within a given territory within a given measure of time.
