Measuring the Distribution of Income and Wealth (HSC SSCE Economics): Flashcards

Money & benefits from contributing to production

Income flows over time; wealth is stock of assets at a point

Divides population into 5 equal 20% groups by income

8.1% of total disposable income

40.9% of total disposable income

Mean is arithmetic avg; median is middle point, less distorted

Visual tool showing income inequality via cumulative percentages

$A/(A + B)$ where $A$ = area between curve & equality line

0 (perfect equality) to 1 (complete inequality)

Wealth Gini 0.611 vs Income Gini 0.318