Tag: Wealth Distribution
The Pareto Principle articulates that a select few causes often yield a majority of results. This rule of thumb, rooted in wealth distribution observations, provides a framework for efficiency across various fields. Despite its broad applicability, it remains a guiding heuristic, not an absolute law.
The Gini coefficient is a statistical measure used to quantify income or wealth distribution inequality. Ranging from 0 (perfect equality) to 1 (absolute inequality), it’s a widely used tool in economics, despite limitations like not accounting for income levels or inequality sources.