Problem Set 1


Due Friday 3 October, 2003.

A few guidelines:




  1. Estimate the Gini coefficient for some real data set. You could do another sports team, average incomes across countries, data from the U.S. (or other) census, salaries at some institution for which data is publicly available, etc. You should consult me before settling on a data set to explore. It's fine if you use the same data set as others. Your calculation should be accompanied by a brief explanation of what the Gini coefficient is and how you calculated it.

  2. Discuss and interpret the Gini coefficient you calculated. In one or two paragraphs, address the following questions:
    1. Do you think the Gini coefficient is indicative of a problem (moral or ethical) or does it indicate a situation which is fair and just?
    2. Why do you think the Gini coefficient is what it is? What mechanisms might have led to the observed level of inequality?
    In your response, you might wish to compare your Gini coefficient to others that we've calculated or read about. (Obviously, there are no "right" answers to the questions above.)

  3. Calculate the mean and median values for your data set.

  4. Calculate the P90/P10 ratio for your data set.

  5. True or false: If two distributions have the same Gini coefficients, then those two distributions must be identical. Explain your answer.



    [Dave] [Core Course] [COA]

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