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    What Is Lorenz Curve?

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    Shahid Shahid
    A Lorenz curve is a graphical representation that plots percentiles of a population on the x-axis against the cumulative percentage of income or wealth that they hold on the y-axis. Lorenz curves are used to measure inequality within a population by comparing the actual distribution to a hypothetical equal distribution represented by a 45-degree line. The Gini coefficient is a statistic derived from the Lorenz curve that quantifies inequality on a scale from 0 (perfect equality) to 1 (perfect inequality). Studies have found a positive relationship between income inequality measured by Gini coefficients and COVID-19 cases and deaths, with a 1% increase in inequality associated with a 4-5% rise in cases and deaths.

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    What Is Lorenz Curve?

    Uploaded by

    Shahid Shahid
    18 views3 pages
    A Lorenz curve is a graphical representation that plots percentiles of a population on the x-axis against the cumulative percentage of income or wealth that they hold on the y-axis. Lorenz curves are used to measure inequality within a population by comparing the actual distribution to a hypothetical equal distribution represented by a 45-degree line. The Gini coefficient is a statistic derived from the Lorenz curve that quantifies inequality on a scale from 0 (perfect equality) to 1 (perfect inequality). Studies have found a positive relationship between income inequality measured by Gini coefficients and COVID-19 cases and deaths, with a 1% increase in inequality associated with a 4-5% rise in cases and deaths.

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    statistic

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    wali 2

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    A Lorenz curve is a graphical representation that plots percentiles of a population on the x-axis against the cumulative percentage of income or wealth that they hold on the y-axis. Lorenz curves are used to measure inequality within a population by comparing the actual distribution to a hypothetical equal distribution represented by a 45-degree line. The Gini coefficient is a statistic derived from the Lorenz curve that quantifies inequality on a scale from 0 (perfect equality) to 1 (perfect inequality). Studies have found a positive relationship between income inequality measured by Gini coefficients and COVID-19 cases and deaths, with a 1% increase in inequality associated with a 4-5% rise in cases and deaths.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    18 views3 pages

    What Is Lorenz Curve?

    Uploaded by

    Shahid Shahid
    A Lorenz curve is a graphical representation that plots percentiles of a population on the x-axis against the cumulative percentage of income or wealth that they hold on the y-axis. Lorenz curves are used to measure inequality within a population by comparing the actual distribution to a hypothetical equal distribution represented by a 45-degree line. The Gini coefficient is a statistic derived from the Lorenz curve that quantifies inequality on a scale from 0 (perfect equality) to 1 (perfect inequality). Studies have found a positive relationship between income inequality measured by Gini coefficients and COVID-19 cases and deaths, with a 1% increase in inequality associated with a 4-5% rise in cases and deaths.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    What is Lorenz Curve?

    A Lorenz curve is a graphical representation of the distribution of income or wealth within a


    population.

    Lorenz curves graph percentiles of the population against cumulative income or wealth of people at or
    below that percentile.

    Lorenz curves, along with their derivative statistics, are widely used to measure inequality across a
    population.

    Because Lorenz curves are mathematical estimates based on fitting a continuous curve to incomplete
    and discontinuous data, they may be imperfect measures of true inequality.

    Can Lorenz curve lie above the line of equality?

    Lorenz curve cannot lie above the line of equality because there is no country to displays either
    perfect equality or inequality in its appropriation of income, the Lorenz curve for various countries
    will lie somewhere to the right of the diagonal.

    Can Gini Coefficient be negative? Did Gini coefficient affected by Covid19?

    The Gini coefficient is the normalized difference of two areas under the Lorenz curves. It is
    most often used in economics to measure how far a country's wealth or income distribution
    deviates from a totally equal distribution. If negative values are possible “such as the negative
    wealth of people with debts” then the Gini coefficient could be maximum larger than 1 and
    minimum 0. where 0 corresponds with perfect equality and 1 corresponds with perfect
    inequality. the Gini Coefficient affected by covid-19 . A positive relationship between
    income inequality and COVID-19 cases and death. A 1% increase in the Gini coefficient is
    associated with an approximately 4% increase in cases and an approximately 5% increase in
    deaths

    Gini coefficient of 10 countries of the world including high inequality low inequality
    and middle inequality economies?

    High Inequality

    1 Lesotho (0.632)
    2 South Africa (0.625)
    3 Haiti (0.608)
    4 Botswana (0.605)

    Low inequality

    5 Guatemala (0.530)
    6 Paraguay (0.517)
    Middle inequality

    7 Namibia (0.597)
    8 .Zambia (0.575)
    9 Comoros (0.559)
    1 Hong Kong (0.539)
    0

    Various income /social groups for survey purpose?

    Following are some classifications of social/income groups:

    1. Upper Class-Elite (High income)

    • United States: 0.417

    • United Kingdom: 0.331

    2. Upper Middle Class/income

    • China: 0.465

    • Mauritius: 0.359

    3. Lower Middle Class/income

    • Algeria: 0.322
    • Bhutan: 0.374

    4. Working Class (Low income)

    • India: 0.359

    • Bangladesh: 0.326

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