Lorenz Curve-The comparison of income equality in a given country. The y-axis represents the percentage of income the people own, and the x-axis is the percentage of income recipients.
Gini Coefficient-Is the simple way of showing income inequality in a given country by converting the Lorenz curve into a simple statistic. The HDI and GNP...
Assumptions:
Lorenz Curve-The straight line represents perfect equality of income in a given country.
Gini Coefficients-In order to calculate the Gini coefficient, one must divide the area between the diagonal and the Lorenz curve and the total area of the half square in which the curve lies.
Definitions:
Lorenz Curve-The comparison of income equality in a given country. The y-axis represents the percentage of income the people own, and the x-axis is the percentage of income recipients.Gini Coefficient-Is the simple way of showing income inequality in a given country by converting the Lorenz curve into a simple statistic. The HDI and GNP...
Assumptions:
Lorenz Curve-The straight line represents perfect equality of income in a given country.Gini Coefficients-In order to calculate the Gini coefficient, one must divide the area between the diagonal and the Lorenz curve and the total area of the half square in which the curve lies.
Graphs:
Examples:
The United States