Brand new Lorenz curve (Wikipedia connect) are a graph showing brand new ratio of total money otherwise riches stored by bottom x% of the people. If for example the riches try just as marketed the newest graph would let you know a good straight line ranging from (0%, 0%) and (100%, 100%). Extent this new contour curve below the line of equivalence reveals new extent from money inequality.
An effective Gini coefficient are calculated each Lorenz bend, however, you'll find enormous quantities out of Lorenz contours each Gini coefficient. Hence, the newest Lorenz curve can't be determined throughout the Gini coefficient by yourself. You to definitely great example of which originates from a newspaper by Christian Damgaard and you may Jacob Weiner called “Detailing inequality in-plant size or fecundity.” I will paraphrase its example regarding income (the first was situated around differences in plant proportions):
Contour 4 shows how projected Lorenz curve on Depend cost savings even compares to the united states savings and also to brand new Lorenz curve I computed for Tinder regarding the restricted research put We collected to possess my prior blog post:
Envision one or two other countries: Nation A have 9 citizens that make $55,560 cash per year and something individual that renders $five-hundred,000 a-year. להמשיך לקרוא The fresh Gini coefficient was calculated regarding Lorenz curve