This new Lorenz curve (Wikipedia link) try a chart proving new ratio off total income or wide range stored because of the base x% of the people. In the event the wide range is actually similarly distributed brand new graph carry out tell you good straight line between (0%, 0%) and you may (100%, 100%). The amount the curve curve underneath the collection of equivalence shows this new the total amount out of wealth inequality.

Good Gini coefficient will likely be determined for each Lorenz contour, but there are an infinite number away from Lorenz curves for each and every Gini coefficient. Therefore, the brand new Lorenz bend can’t be calculated throughout the Gini coefficient by yourself. One to great example of that it comes from a paper by the Christian Damgaard and you may Jacob Weiner entitled “Detailing inequality in plant size or fecundity.” I will paraphrase their example regarding money (the initial is actually situated doing differences in bush size):

Profile 4 shows the way the estimated Lorenz bend into Rely savings even compares to the usa discount and to the newest Lorenz curve We calculated to own Tinder on the minimal data lay I amassed to have my previous post:

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