Lorenz Curves and the Gini Coefficient

[oxana77]

omg thank you! I finally get now

[haylis]

Thank you sooo much!

[1994sevas]

Hmm... Thanks for the video.

[Pokehvid]

Paused at 4:14, suddently felt like eating a banana.

Seems very informative so far though, thanks. You're helping me work out my final exam in 2 years of societies studies.

[FrederikLambert]

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?

[EJ46343]

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

[afonsorules]

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 =).

[sassyprincessmary]

Thank you very much!

[suugaygo]

Thanks

[UkuphumaDoon]

So easy to follow and I now get it! Thanx so much!

[fibubu1]

Thank you for sharing your knowledge with us is such an easy way to understand it, that's real help.

full respect

Marcin R.

[emmanuelnsanga]

the US is 45 dam!

[milligoree]

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!

[carrotxdawg]

cheers! this was awesome

[fakewaysful]

wtf@ 3:02 :D

[MeSooCrazyy]

thanks man,that helped me a lot

[braydenbeautiful]

It may be worth mentioning that

G = 1 - 2 (0 subscript, 1 superscript)ƒ L(x)dx

as I am sure many of your watchers have to do the calculus for this as well.

[taejdza]

very helpful

[zaccas]

very good

[kbn989]

Thanks for clearing that up.  Pretty simple and clear explanation.

[mp1p]

Trillions of dollars were wiped out in 2008, You went to bed knowing they were there and woke up to find it all gone.

Government Policy is TURN ON THE PRINTERS BOYS we gonna print us some money post xerox - Generations Are now In debt, I would think logically say boost the population and increase family benefit tax credits in 20-30 years when they come of age and when they are "Taxable" citizens they will pay today's bills.

upside to it all...

thank god for visa

[backbitting1]

Thank you very much, tottally saved my ass on my math assignment.

[xcashewx]

Thank you for posting this video! I was sick and missed a class covering this material.

You go through the steps very slowly and coherently. Great stuff!

[hotmaletryforfree]

thumbs up if you' re from haganum and it was your homework to watch this for economy lessons :D

[janusmallick]

Excellent video, thumbs up from CIIT Abbottabad, Pakistan

[MNGMandFriends]

thanks this makes everything clear

[sh3riz]

THANK YOU

im in the IB as well! your explanations are very straight forward and to the point!

[mmartinb]

tnx Im doing the ib and this is perfect for review. kudos

[hammaerst]

hehe, i watched your movies while doing the ib. now i am actually studying economics in my first year and still watching the movies. Backlash...

[RealPatriot19]

Hopefully people will see how if we have such a large inequality in income people actually have LESS ability to innovate and take chances creating businesses and jobs for fellow citizens regardless of how "Free" markets seem.

[Rastin2002]

Sir, you are fantastic. University of Otago, New Zealand.

[truckstar007]

I'm Dutch, but it's realy clear and I understoud everything!

This is great!

[lateraligator2]

This will definitely help me on my soc midterm tomorrow :)

[ladysman003]

great video!!

very helpful

[masipula11]

Thnx for the great video, keep them comin please!!!

[DanielEliot89]

Thank you so much for this really informing Video :)

[twogoodith]

Great video

[Kiyaki777]

Thanks

[RARGmeow]

I live all the way in Australia and this is the most instructive and helpful video i have seen thank you soo very much Mr. Holden.

[DeanJanse]

my favourite economics teacher:)

[jeevakarunya]

thank you so much sir,

[dimitryslavin]

Helped me study for my econ final exam! Thanks!

[mariamxkhan]

excelent video!

[jarek1283]

Thank You !

[ystanya]

you're awesome for doing what you do! you help so many students!

[aumaralam]

why can the curve not curve top the left of the line of equality and if it can does it mean the same thing??

[Dps100]

@aumaralam Because the bottom 20% of households cannot have more than 20% of the income, or they would be the top 20% (if that makes sense). Its just to do with the way that the axis on the graph are measured, the poorer are 0-20% rather than the poorer being 80-100%. Hope that confusing explanation kind of helped?

[plzhealme]

You shuld be university professor. Cheers.

[chriskill08]

thank you so much!!!! this was excellent!!

[Natmandu]

Really, really appreciate your help Phil.

[1BigPapiRay]

Great help!

[MrManishthapar]

Very helpful

[MrManishthapar]

Thanks phil....... Very helpful.

[benjiimaster]

Thanks for taking the time to make these phil.

[sandy040783]

Hi Phil, I am from Germany and I have a statistics final on friday.I just found that video and your explanation has really helped me understanding part of what I have to do in class. Amazing....Thanks for doing that.

[somewherepurple]

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.

[MrManishthapar]

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

[Biriuk86]

you've rescued me before most horrible maths exam, thanks very much

[iluvgh3tt0princ3ss]

Thank you sir. Very helpful

[prettykitty00]

This video is the reason I'm going to ace my economic development test this thursday. It was so concise, easy to understand and covered so much in UNDER TEN MINUTES!!! What an great teacher!! mad props yo

[jackolavin]

you are the future of economic teaching bring down barriers to entry in the economics knowledge markets.

thanks!

[utubmania2009]

I wish years ago, my prof. will show us such lessons easy to understand with direct approach visually instead of those mambo jumbo unnecessary extras.

[SomeoneFromOne]

Very helpful! Thanks Mr. Phil!

I began to take notes while listening to you.

[iggytan]

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?

[5tarStunna]

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?

[5tarStunna]

so what would be the role of the diagonal in the depiction of income inequaliity?

[jstuart2003]

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.

[mccarthy852]

Thanks Phil. Great video, very clear and helpful.

[ComradeSephiroth]

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).

[Italodisco80]

japan is the best place to be a man even the poorest. in usa theyll rotten in streets seweres

[ronwandell]

In a society with a GINI coefficient of zero, janitors and brain surgeons make the same. So we know that your society has NO brain surgeons. Why would anyone bother with the schooling.

When I say "you" I mean people concerned with GINI coefficients, not the speaker. His explanations are very clear. A very good teacher.

[tweak41]

yes, an economy with a gini coefficient of zero has perfect income quality and so everyone earns the same amount. But why would that mean that there would be no brain surgeons? People are concerned with the gini coefficient because they want to measure income inequality.

[ronwandell]

This is an excellent explanation for...

... Ideas I can't stand. But it is good stuff.

If you understand the Pareto principle or the 80/20 rule, you know that if you come across an economy that has a GINI coefficient of 0 it is inherently UNFAIR. In a true free market income is "distributed" in line with the "distribution" of productivity and telent.

Europeans feel the fable of the 3 little pigs shows the ambitious pig HURT the other two by messing up the GINI coef by building the brick house.

[tweak41]

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.