Tuesday, April 16, 2013

Lorenz Curve

http://www.ssc.ca/en/education/archived-case-studies/case-studies-for-the-2003-annual-meeting-neighbourhood-factors-and-children
A Lorenz Curve, or accumulative line graph, is used to compare actual dispersion of an entity (typically wealth) to how it would be if the entity were distributed evenly or equally amongst the subjects. Thus, it illustrates inequality well. This Lorenz Curve illustrates the unequal distribution of cumulative income. The downward bending indicates low portion of the population attaining high amounts of the wealth. These graphs are useful for economists and policy makers when it comes to salary etc.

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