METHODOLOGY OF ASSESSMENT OF ECONOMIC INEQUALITY: WORLD PRACTICE

  • V. Opalko Cherkasy National University named after Bohdan Khmelnitsky
Keywords: еconomic inequality, Gini index, GDP per capita (PPP), method of taxonomy, income of the population, Sustainable Development

Abstract

The objective of this study is the analysis and development of recommendations on the methods of measuring economic inequality under the conditions of sustainable development. The article uses the method of comparative analysis (comparing inequalities between countries), the methods of systematization, grouping and hierarchy (carrying out an express analysis of economic inequality in the world based on inequality indicators: the Gini coefficient, Palmа index and GDP per capita et al). Methodical approaches to the estimation of inequality in the conditions of sustainable development on the basis of the taxonomy method are developed. The research is based on the hypothesis that the magnitude of the inequality is the ratio between the objects of the study and determines the deviation of the object of research by certain indicators from the median of this indicator (standard). It is substantiated that inequality on the global level is a systemic phenomenon that is the result of various socioeconomic opportunities being unused by the countries and the existing differences in the development between the countries, which significantly reduces their ability to participate in the world economic processes. A number of methods for measuring the level of inequality, which are mainly based on quantitative estimation of income inequality (consumption), are investigated: Gini coefficient, Palma, decile and quintile indices, gender entropy index et al. The calculation of the taxonomic coefficient of inequality based on the comparison of the eight indicators of inequality for 154 countries of the world is proposed and carried out, and the grouping of countries based on the proposed indicator is carried out.

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Published
2018-01-17
How to Cite
Opalko, V. (2018). METHODOLOGY OF ASSESSMENT OF ECONOMIC INEQUALITY: WORLD PRACTICE. Economic Scope, (129), 30-44. Retrieved from http://www.prostir.pdaba.dp.ua/index.php/journal/article/view/165
Section
INTERNATIONAL ECONOMY AND CHANGES OF GEO-ECONOMIC SPACE