A Lorenz curve is a cummulative frequency curve showing the distribution of a variable such as population against an independent variable such as income or area settled. If the distribution of the dependent variable is equal, the plot will show as a straight, 45° line. Unequal distributions will yield a curve. The gap between this curve and the 45° line is the inequality gap. Such a gap exists everywhere, although the degree of inequality varies.
No comments:
Post a Comment