New Lorenz bend (Wikipedia link) is actually a chart appearing the fresh ratio away from total earnings or money kept of the base x% of the people. If the wide range is actually equally delivered the latest chart do inform you a good straight line anywhere between (0%, 0%) and you will (100%, 100%). The amount the brand new contour bends underneath the collection of equivalence reveals the fresh extent of wealth inequality.
A Gini coefficient are calculated each Lorenz curve, but you can find enormous quantities regarding Lorenz curves for every single Gini coefficient. Ergo, brand new Lorenz contour cannot be computed in the Gini coefficient alone. You to high example of that dateres i dominikansk kultur it comes from a newsprint from the Christian Damgaard and you will Jacob Weiner named “Explaining inequality in plant proportions or fecundity.” I am able to paraphrase its analogy with respect to earnings (the original is actually dependent to differences in bush dimensions):
Profile 4 suggests how projected Lorenz curve into Count discount compares to the us cost savings also to this new Lorenz bend We determined to own Tinder on restricted data place We built-up to own my personal prior blog post:
Envision several various countries: Nation A have actually nine residents which make $55,560 bucks annually plus one individual that produces $500,000 annually. Nation B has actually four citizens that produce $20,000 per year and you may four that make $180,000 per year. Evaluate Profile step three to visualize these two economies. Which discount possess a whole lot more inequality? According to the Gini coefficient both have the same amount out-of inequality. The fresh new Gini coefficient was 0.444 for nations.
Understanding the model of the new Lorenz bend on the Count benefit could be very useful for additional investigation, but unfortunately there is no way to learn the actual model of the brand new bend regarding only the Gini coefficient. Lees verder