An exact calculation method for Gini coefficient and its application in China

Abstract

Although there are many methods for calculating the Gini coefficient, but most of them are ultimately applied to Chinese practice through some kind of approximation means. A more accurate calculation method of N-aliquot part Gini coefficient is obtained and applied to Chinese practice through a rigorous mathematical derivation in this paper. It is found that the Gini coefficients in urban areas, rural areas and the whole China have obvious inverted U-shaped characteristics; it is an apparent turning point in 2008. At the same time, the population-weighted contribution rate study shows, the contribution rate has continued to increase from 14.3% in 2000 to 32.8% in 2015 to the national Gini coefficient coming from the urban group, however it has continued to fall from 23.8% to 8.7% coming from rural areas.

Keywords:

• Gini coefficient
• N-aliquot part calculation formula
• Income gap between the poor and the rich
• Chinese practice