File:Lorenz Curve for Jordan Final.png
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[edit]DescriptionLorenz Curve for Jordan Final.png |
English: Gini index measures the extent to which the distribution of income (or, in some cases, consumption expenditure) among individuals or households within an economy deviates from a perfectly equal distribution. A Lorenz curve plots the cumulative percentages of total income received against the cumulative number of recipients, starting with the poorest individual or household. The Gini index measures the area between the Lorenz curve and a hypothetical line of absolute equality, expressed as a percentage of the maximum area under the line. Thus a Gini index of 0 represents perfect equality, while an index of 100 implies perfect inequality. The gini coefficient is 0.3370 and it is determined between the area of the Lorenz curve and line of perfectly equal distribution divided by the sum of the area and area between the Lorenz curve and x-axis. A/A+B. This shows that the income distribution has room for improvement since the gini coefficient can be closer to 0. Despite it not being exactly at 0 an economy should not be perfectly equal so there can be incentive to work harder and earn more. |
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Author | 19amasad |
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current | 08:40, 23 May 2018 | 1,017 × 579 (107 KB) | 19amasad (talk | contribs) | User created page with UploadWizard |
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