What is a generalized Lorenz curve?

The Generalized Lorenz Curve is a modification of the Lorenz Curve in which the accumulated fraction of incomes up to each fraction of the population is multiplied by the average income of the distribution.

What type of function is the Lorenz curve?

The Lorenz curve for a probability distribution is a continuous function.

What is the relationship between Lorenz curve and?

The Lorenz curve is a graphical representation of the degree of equality/inequality in the distribution of income. In Figure 1 above, the curved line represents a Lorenz curve, which plots the cumulative percentage of income recipients, ranked from poorest to richest, against the cumulative percentage of total income.

How is a Lorenz curve used to represent a nation’s income distribution quizlet?

How is a Lorenz curve used to represent a​ nation’s income​ distribution? The closer the Lorenz curve is to a straight​ line, the more equal the distribution of income. Which of the following is not an approach to measuring​ poverty? The marginal poverty standard that looks at the marginal increases in income.

How is Lorenz curve used to measure the poverty?

The “Lorenz curve” is a common graphical method of representing the degree of income inequality in a country [9]. It plots the cumulative share of income (y axis) earned by the poorest x% of the population, for all possible values of x (see the Illustration for a practical example).

What are the limitations of Lorenz curve?

If two Lorenz Curves intersect, it is not possible to determine which distribution has more inequality. In the lifetime of an individual, there will be variation in income and this variation is not taken into consideration when inequality in the Lorenz Curves is analyzed.

What is the relationship between a Lorenz curve and a Gini coefficient give some examples?

The further a Lorenz curve deviates from the perfectly equal straight line (which represents a Gini coefficient of 0), the higher the Gini coefficient and the less equal the society. In the example above, Haiti is more unequal than Bolivia.

Whats is the relationship between the Lorenz curve and the Gini coefficient?

The Gini coefficient is the area between the Lorenz curve of the income distribution and the diagonal line of complete equality, expressed as a proportion of the triangular area between the curves of complete equality and inequality.

Which of the following can be determined by looking at a Lorenz curve?

Which of the following can be determined by looking at a Lorenz curve? The relative division of total income among income groups.