The Limitations of the Gini Coefficient and Its Ability to objectively Reflect the Real Gap between the Rich and the Poor: A Case Study of Hong Kong

Abstract

This article aims to explore the limitations of the Gini coefficient in measuring the gap between the rich and the poor, and analyze whether it can objectively reflect the actual situation of the gap between the rich and the poor, conducting in-depth research with Hong Kong as a specific case. Through the analysis of the theoretical basis, calculation method and influencing factors of the Gini coefficient, combined with the characteristics of Hong Kong's social and economic structure, housing, taxation, social security and other aspects, this paper reveals the predicaments faced by the Gini coefficient in the application process in Hong Kong, and then explores more comprehensive and accurate methods and indicators for measuring the wealth gap, providing more targeted reference basis for policy-making.