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《Economic Research Journal》 2004-09
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A Study of the Best Theoretical Value of Gini Coefficient and Its Concise Calculation Formula

Hu Zuguang (Zhejiang Gongshang University,China)  
The paper pointed out the difficulty of calculating China's Gini coefficient because the income distribution data in the “China Statistics Yearbook”is given separately under the title of “Urban” and “rural”. The paper got a concise formula for calculating Gini coefficient: Gini Coefficient equals the difference between the income percentage of the highest income group and the income percentage of the lowest income group in the quinquepartite income. The paper proved with strict mathematics that the best theoretical value of Gini coefficient is 0.3333,or a third. The paper calculated Gini coefficient of 32 countries by using the concise formula and the data published by the World Bank. A comparison between the calculated Gini coefficients and the published Gini coefficients by the World Bank shows that the results are very close to each other. The analysis of the best theoretical value and the concise calculation formula of Gini coefficient in the paper provided a simple and quick way to calculate Gini coefficient of China as a whole.
【CateGory Index】: F222
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