cafeconomics

 The Gini Coefficient measures the equality of incomes of the population in an economy. As shown in the image below the % cumulative population is marked on the x-axis and the corresponding cumulative incomes are marked on the y-axis. The red curve showing actual distribution of incomes is called Lorenzo curve and the distance between the line of equality and Lorenzo curve is measured by the Gini coefficient. A score closer to 0 indicates perfect equality whereas a score of 100 indicates perfect inequality. This is a list of 100+ countries sorted by Gini coefficient sourced from https://knoema.com/atlas/ranks/GINI-index It is not surprising for us to note that many of the developing countries are facing high degree of inequality whereas some of the Western European and Scandinavian countries have better income equality. The income inequality in United States is close to that of Uganda and Mongolia! The Neoclassical Theory The traditional neoclassical theory states that factor incomes a

 Whether we like it or not India's fortunes are linked to the global growth and well-being more than ever before.   In the last five years, correlation between India's and global growth rate has only gone up. India's economic performance is subject to global headwinds and tailwinds and in the coming decades this correlation is only going to get more significant.