New Gini coefficient are calculated regarding the Lorenz contour
New Gini coefficient are calculated regarding the Lorenz contour The latest Lorenz contour (Wikipedia hook up) is actually a chart showing the brand new ratio away from overall earnings otherwise money kept by bottom x% of the people. In the event your wealth are just as delivered the fresh graph manage inform you an excellent straight line between (0%, 0%) and you can (100%, 100%). The quantity the bend bends underneath the type of equality shows new the quantity away from wealth inequality. A great Gini coefficient should be calculated each Lorenz contour, however, there are thousands away from Lorenz contours each Gini coefficient. Ergo, brand new Lorenz contour can not be determined on Gini coefficient alone. You to great exemplory case of it comes from a magazine from the…