Data on GDP per capita and the average income of the population of the state can be insufficiently for determination of his welfare. Especially it belongs to cases when in the state the stratification between the rich and the poor is strong. Jeanie's coefficient allows to define extent of this stratification and to add an overall picture of welfare of citizens.
It is required to you
- Brown's formula, Jeanie's formula
Instruction
1. Jeanie's coefficient can accept values from 0 to 1. Also it can be expressed as a percentage. It is possible to calculate Jeanie's coefficient by Brown's formula: G = | 1-? (X \k} - X {k-1}) (Y {k} - Y{k+1}) |. In this formula G - Jeanie's coefficient, X {k} - a cumulative share of the population, Y {k } - an income share which in total receives X {k}.? - sign of summation. Summation is conducted by index k from k = 1 to k = by n where n is number of households.
2. Also Jeanie's coefficient it is possible to calculate Jeanie by a formula: G =? (? | y {i } - y {j } |) / (2 * (n^2) * ||y||), where y {k } - a share of income of a household in total income, ||y|| - an arithmetic average of shares of income of households. The first sign of summation conducts summation by index i from i = 1 to i = n, the second (in brackets) - by index j from j = 1 to j = n where n - number of households, as well as in Brown's formula.
3. The Jeanie less than some, the stratification among the chosen group is less. It is possible to count Jeanie's coefficient not only within all state. For example, it is possible to count Jeanie's coefficient for different groups of the population - residents and sat down; employees of the private and state enterprises and. etc. Jeanie's coefficient for one set can differ depending on calculation conditions. The more the number (groups) of quantiles into which the set when calculating is divided the more will be Jeanie's coefficient. It is also important to remember that Jeanie's coefficient does not consider income sources.