Lorenz curve

Also found in: Encyclopedia, Wikipedia.

Lorenz Curve

A graph showing what percentage of a population possesses a certain percentage of a thing. For example, a Lorenz curve may show that the top five percent of the people in a country control 40% of the wealth. While it may be used in ecology as well as some other fields, it is frequently used in economics to represent social inequality. It was developed in 1905.

Lorenz curve

see CONCENTRATION MEASURES.
Mentioned in ?
References in periodicals archive ?
We first construct a Lorenz curve using the wage distribution of the entire sample, which is the purple curve labeled "Cross-sectional" in Figure 1.
Key words: Energy Consumption; Inequality Measures; Lorenz Curve; EU-15.
The analysis continued with the calculation of the Lorenz curve. The Lorenz curve (Figure 2) shows the distribution of tourist arrivals against the months of year.
This creates a type of Lorenz curve, L(x), which represents how national personal income is actually distributed across die (x = 50) states.
The Pareto Lorenz curve indicated that a specialized community of bacteria were present in 30 days old panchagavya.
Keywords: Income Inequality; GB2; Gini Index; Generalized entropy measure; Lorenz Curve
To construct a Lorenz curve, we rank households according to their wealth; the Lorenz curve plots the fraction of total wealth that is held by households who are poorer than a given fraction of the population.
where L(i) is the Lorenz curve, and G is, by definition, [MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII].
The Gini Coefficient, founded by Corrado Gini in 1912, is a quantitative representation of the Lorenz Curve. Looking at Figure 1, we can see that Area A is the area between the actual income distribution and the perfect equality line; and Area B is equal to half the box minus Area A.
These portfolios are natural extensions of the classic Lorenz curve and associated Gini index that we review in the following.

Site: Follow: Share:
Open / Close