The brand new Lorenz bend (Wikipedia connect) try a graph indicating the brand new ratio away from complete earnings otherwise money kept by bottom x% of the people. In case your riches are equally distributed new graph perform inform you an excellent straight line ranging from (0%, 0%) and you can (100%, 100%). The quantity the latest contour curve underneath the collection of equality shows the new the amount out of wide range inequality.

An excellent Gini coefficient should be computed each Lorenz bend, however, you’ll find an infinite number of Lorenz shape for every Gini coefficient. Hence, new Lorenz contour cannot be computed in the Gini coefficient by yourself. You to definitely high exemplory case of that it arises from a papers by the Christian Damgaard and you will Jacob Weiner named “Discussing inequality in-plant size or fecundity.” I’m able to paraphrase its example regarding income (the original was created around variations in plant dimensions):

Profile 4 reveals how projected Lorenz curve for the Depend discount compares to the united states economy and also to the new Lorenz contour We computed getting Tinder from the restricted study lay We gathered for my personal past blog post:

Think a few various countries: Country A posses nine owners that make $55,560 bucks per year and another person who helps make $five hundred,000 per year.

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