Why the Gini coefficient underestimates wealth
Given that we’re almost always calculating the gini of income distribution, not wealth, so what?
Why the Gini coefficient underestimates wealth
Given that we’re almost always calculating the gini of income distribution, not wealth, so what?
I think Ritchie took the same statistics class as Polly.
DannyB asks him to explain why he thinks inequality is increasing when the OECD/JRF et al show it decreasing by reference to the Gini coefficient, i.e. the CHANGE in the coefficient’s result. Ritchie replies (some 24 hours later!) with a referecne to his friends’ views on the principle Gini coefficient.
NOT. A. CLUE
And of course he mixes up income distribution with holding fixed assets.
I also see that he uses his typical approach to disclosing his sources and assumptions:
Right-wing troll commenter: “Mr Murphy, you assert in your blog that neo-conservatives eat babies. What evidence are you using to justify that?”
Murphy: “Any number of the innumerable reports that confirm it. You can use Google too”