Summary chapter 5

Summary chapter 5 - .Theystartatp.266 Goodluck Definitions...

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I did not include the appendixes because they are only 3 pages long each and they are  themselves summaries of models and formulas. They start at p. 266. Good luck! Definitions Absolute poverty:  a situation where a population of section of a population is, at most,  able to meet only its bare subsistence essentials of food, clothing, and shelter to  maintain minimum  levels of living . See also  international poverty line  and  subsistence  economy Asset ownership:  the ownership of land,  physical capital , and financial  resources  that  generate income for owners. The distribution of asset ownership is a major determinant  of the distribution of personal income in any nonsocialist society. See also  income  distribution . Character of economic growth:  the distributive implications of the processes of  economic growth; for example, participation in the growth process or asset ownership. In  other words, how economic growth is achieved and who benefits.  Deciles (tenths):  a 10% portion of any numerical quantity; a population divided into  deciles would be divided in to 10 equal numerical groups. See also  quintile . Disposable income:  The income that is available to households for spending and  saving after personal income taxes have been deducted. Factors of production:  Resources  or  inputs  required to produce a  good  or  service Basic categories of factors of production are land, labor and  capital . Foster-Greer-Thorbecke (FGT) index:  A class of measures of the level of  absolute  poverty,  which include as special cases the headcount ratio and the normalized income  shortfall, but in other cases, notably the P2 measure, satisfy all four axioms for desirable  poverty measures, including distributional sensitivity. Functional, or factor share distribution of income:  The distribution of income to  factors of production  without regard to the ownership of the factors. Gini coefficient:  An aggregate numerical measure of  income inequality  ranging from 0  (perfect equality) to 1 (perfect inequality). It is measured graphically by dividing the area  between the perfect equality line the  Lorenz curve   by the total area lying to the right of  the equality line in a Lorenz diagram. The higher the value of the coefficient, the higher 
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the inequality of income distribution; the lower it is, the more equitable the distribution of  income.
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