Treno index is an index used to measure the level of economic and social development of a country or region. This index was founded by Italian economist AlessioTreccani in 1990, and has become one of the widely used indicators in the world.
The formula for calculating the Treynor index is as follows:
Treno index =(GDP/N)*( 1- Gini coefficient)
Among them, GDP refers to the gross domestic product, N refers to the population of a country or region, and Gini coefficient is an index used to measure the inequality of income distribution.
The functions of the Trelawney index mainly include the following aspects:
1. Measuring the level of economic and social development: The Trino index can accurately reflect the level of economic and social development of a country or region. Because its calculation method is related to factors such as GDP and income distribution, it can reflect the development level of a country or region more comprehensively.
2. Discovering inequality: The Treno index can also help people discover the inequality of income distribution. If the Tereno index of a country or region is very high, it shows that the income distribution inequality in this region is relatively large, and measures need to be taken to narrow the income gap.
3. Setting policy objectives: The Trino index can be used as a reference index for policy formulation. The government can formulate corresponding policy objectives by analyzing the trend of the Treno index, such as increasing social security investment and improving education level, so as to promote economic and social development.
In a word, as a comprehensive index, the Treno index can help people to understand the economic and social development level of a country or region more comprehensively, and it is also very helpful to formulate corresponding policy objectives.