Question

Calculating gini coefficient for states in india

Answer 1

The prevalence of disparities in the living standard across states is the outcome of income inequality. Inequality can be defined as a deviation from equality where any individual unit is receiving less than his proportionate share of aggregate income. This state is referred to as relative deprivation, whereas absolute deprivation is equated with poverty, wherein one is not getting sufficient enough to survive. Inequality is often studied as part of broader analysis covering poverty and welfare both. But these three concepts (inequality, poverty and welfare) are distinct. It is in the fitness of things to judge the difference among these three concepts here because all these three concepts have been studied in different chapters in the study. Inequality is broader concept than poverty because the former is defined over the whole distribution and not only the censored distribution of individuals or households below a certain poverty line. Moreover income at the top and in the middle of the distribution may be as important as those at the bottom. On the other hand, inequality is much narrower concept than welfare. Although both of these capture the whole distribution of a given indicator, inequality is independent of the mean of the distribution (desirable property) and instead solely concerned with the dispersion of the distribution. However these three concepts are closely related and are sometime used in composite measure (Litchfield ,1999). Income inequality among the regions has been rising and the growing divide between the richer states and poorer states deserve the immediate attention of policy makers and public. Rising income inequality matters not only because it raises basic issue of equity and fairness but because it affects our economic and political system in adverse manner. Moreover, the concept of regional distribution of income is extremely relevant in the economic development of India too. In this context that, we think, it is important to examine whether regional disparities across states in India have been increasing over the years. Accordingly this chapter has been divided 93 into five sections. The first Section is introduction itself. Second section throws light on the rationale behind studying inequality and its measurement through various methods and technique. The extent of income inequality based on chosen measures of inequality is presented in Section III. In Section IV the issue of convergence

Answer 2

Answer:

The prevalence of disparities in the living standard across states is the outcome of income inequality. Inequality can be defined as a deviation from equality where any individual unit is receiving less than his proportionate share of aggregate income. This state is referred to as relative deprivation, whereas absolute deprivation is equated with poverty, wherein one is not getting sufficient enough to survive. Inequality is often studied as part of broader analysis covering poverty and welfare both. But these three concepts (inequality, poverty and welfare) are distinct

Explanation: