Question A1

We have touched on inequality this semester.Income/wealth inequality is one of the biggest topics in economics today.

If you remember, we did a discussion on income inequality at the beginning of the term.Below are the resources for that discussion.

We also read a paper by Robert Lucas that explored inequality among nations.We read one by Paul Krugman that explored inequality among individuals.

I would like you to think about this topic again.

https://www.youtube.com/watch?v=0xMCWr0O3Hs

https://www.youtube.com/watch?v=VXI_ADnp22c

https://www.youtube.com/watch?v=1DU2IT8rl6c

https://www.youtube.com/watch?v=QPKKQnijnsM

The question is this:How would you measure income inequality.

What data do you need to solve this measurement problem?What factors do you need to consider?How would you get the data you need?How would you estimate income inequality?Finally, based on what you have learned in this class, what is the cause of income inequality?What policy would you suggest to make it less?Or is no additional policy needed?