Tuesday, April 16, 2013

Caught in the middle with EU

More median mischief, this time in Europe, where a new study found Germany to be poorer than Greece!
...it appears that not only the median German household has the lowest wealth, but also that the differences within the Eurozone are enormous. The median households in countries like Belgium, Spain and Italy appear to be three to four times wealthier than the median German household. Even the median Greek household is twice as wealthy as the German one.
Economists Paul De Grauwe and Yuemei Ji aren't buying it;
In Germany the mean household wealth is almost four times larger than the median. In most other countries this ratio is between 1.5 and 2. Thus household wealth in Germany is concentrated in the richest households more so than in the other Eurozone countries. Put differently, there is a lot of household wealth in Germany but this is to be found mostly in the top of the wealth distribution.
Forgotten by the two is that the median household may not be of the same composition in  Mediterranean countries as in the richer northern ones.  Probably as they rush to justify taxing Germans to help out the struggling southerners.  Still, the uses of the median are strange.

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