RE:Lorenz Curve (1 Viewer)

[BLIT2014]

On the Lorenz curve, how would you show a gini co-efficient of '1' (I.E perfect inequality)



Is it possible to show?



Thank you

 

[photastic]

Re: Lorenz Curve

Gini Coefficient = Area A/Area A+Area B
Since there is no Area B at perfect inequality, hence Area B = 0
Therefore Gini Coefficient = Area A/Area A = 1

Don't know how to qualitatively explain it though.

 

[BLIT2014]

Re: Lorenz Curve

Gini Coefficient = Area A/Area A+Area B
Since there is no Area B at perfect inequality, hence Area B = 0
Therefore Gini Coefficient = Area A/Area A = 1

Don't know how to qualitatively explain it though.

I know that but I don't think I'm explaining what I'm attempting to ask properly

 

[BLIT2014]

Re: Lorenz Curve

Thank you tho

 

[photastic]

Re: Lorenz Curve

I know that but I don't think I'm explaining what I'm attempting to ask properly

Is that really a question? Just refer to the areas cos it's a stupid question and not even economics.

 

[BLIT2014]

Re: Lorenz Curve

Is that really a question? Just refer to the areas cos it's a stupid question and not even economics.

It's not a question for HSC level economics certainly :I

It's more like me looking at notes and wondering if how you'd be able to do something which wouldn't be examined?

 

[photastic]

Re: Lorenz Curve

It's not a question for HSC level economics certainly :I

It's more like me looking at notes and wondering if how you'd be able to do something which wouldn't be examined?

Dat logic, explains why you smash economics

You should rather focus on what happens when the lorenz curve is 1 and how individuals/businesses/governments respond will increase your economic thinking

 

[Drifting95]

Re: Lorenz Curve

Dat logic, explains why you smash economics

You should rather focus on what happens when the lorenz curve is 1 and how individuals/businesses/governments respond will increase your economic thinking

I'm all for students extending themselves beyond the syllabus, it really does assist in your extended responses if you understand MORE than is expected.

 

[Intrinsic]

Re: Lorenz Curve

I guess you'd have to draw the line of inequality as far back as possible, which should demonstrate a gini co-efficient of about 0.95+

 

[elkedag]

Re: Lorenz Curve

I would think it is a point at 100% cumulative income / 100% cumulative population, and a line along the population axis, not including the 100% cumulative population point.