THE USE OF THE GINI RATIO IN MEASURING DISTRIBUTIONAL IMPACTS
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Economists often use the Gini Ratio for measuring inequality in income or program benefit distributions without fully understanding the implications and limitations of this statistic. This paper delineates some of the limitations in the use of the Gini Ratio as it is usually calculated. It also examines several new techniques for calculating the Gini Ratio which mitigate some of these shortcomings.