Slides for statistic project course 2013.

1. Time Series Correlation of GINI and GDP
by Giulio Ungaretti, Johannes Beil, Katrine Rasmussen and Marina Hesselberg

2. Economic growth and inequality
Theory
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3. !
Data Available
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Data from datamarket.com (World Bank time series data)
Number of countries: 236
Range of years: 1990-2010
Number of data points for GDP: 4956
Growth calculated from the GDP data points
Number of data points for GINI: 852

4. Data Consideration

5. Searching for Correlations
Low growth
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Pearson corr: 0.03 +/- 0.1
Probability: 2 %
Middle growth
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Pearson corr: -0.09 +/- 0.32
Probability: 22 %
High growth
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Pearson corr: -0.30 +/- 0.25
Probability: 78 %

6. Results
Pearson corr: -0.18 +/- 0.18
Probability: 69 %
Pearson corr: 0.09 +/- 0.32
Probability: 22 %
Pearson corr: 0.43 +/- 0.42
Probability: 71 %

7. Conclusions
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GDP and GINI are correlated for subsets of countries
Correlations between equality and growth are strongest regional
Sociology is hard