Saturday, July 16, 2011

Lorenz Curve

http://www.personal.psu.edu/~dxl31/econ2/Spring_2006/lecture37.html






The black line shows how the data should be graphed given it is equally distributed. The purple line (the Lorenz curve) represents the actual distribution.  The further the Lorenz curve bows away from the line of income equality, the more unequal the distribution of income.

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