Principles of the Gini Coefficient
The Gini coefficient is one of the most utilized measures of economic inequality because it aligns with the following principles:
1. Anonymity
The coefficient does not disclose the identities of high-income and low-income individuals in a population.
2. Scale of independence
The calculation of the Gini coefficient does not depend on how large the economy is, how it is measured, or how wealthy a country is. For example, both rich and poor countries may show the same coefficient due to similar income distribution.
3. Population independence
The coefficient does not depend on the size of the population.
4. Transfer principle
The coefficient reflects situations when income is transferred from a rich to a poor individual.
(Citation from: https://corporatefinanceinstitute.com/resources/economics/gini-coefficient/
This approach Muhammad Shan can be combined with:
https://www.statisticshowto.com/multidimensional-scaling/
I think PESTEL ANALYSIS is suitable because it is a strategic framework used to evaluate business environment.
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