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EMPIRICAL PROJECT 5MEASURING INEQUALITY: LORENZ CURVES AND MINI COEFFICIENTSLEARNING OBJECTIVES In this project you will: draw Lorenz curves and interpret the Mini coefficient calculate and interpret
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How to fill out gini coefficient and lorenz
How to fill out gini coefficient and lorenz
01
To calculate the Gini coefficient:
02
Arrange the income or wealth data from lowest to highest.
03
Calculate the cumulative proportion of the population on the x-axis and the cumulative proportion of income or wealth on the y-axis.
04
Plot the points on a graph.
05
Calculate the area between the Lorenz curve and the line of perfect equality (the diagonal line from the bottom left to top right of the graph).
06
Divide the area obtained in step 4 by the total area under the line of perfect equality.
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Subtract the result from step 5 from 1 to obtain the Gini coefficient.
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To calculate the Lorenz curve:
10
Arrange the income or wealth data from lowest to highest.
11
Calculate the cumulative proportion of the population on the x-axis and the cumulative proportion of income or wealth on the y-axis.
12
Plot the points on a graph.
13
Connect the points to form a curve.
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Who needs gini coefficient and lorenz?
01
The Gini coefficient and Lorenz curve are commonly used in economics and related fields to measure income or wealth inequality.
02
Governments, policymakers, and researchers use these measures to analyze and monitor inequality within a country or region.
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They help identify disparities in income or wealth distribution and can inform policymakers' decisions on social and economic policies.
04
International organizations and development agencies also use the Gini coefficient and Lorenz curve to compare inequality levels across different countries and regions.
05
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What is gini coefficient and lorenz?
The Gini coefficient is a measure of statistical dispersion intended to represent the income or wealth distribution of a nation's residents, and the Lorenz curve is a graphical representation of income or wealth distribution.
Who is required to file gini coefficient and lorenz?
Government agencies, research institutions, and organizations collecting data on income or wealth distribution are typically required to file Gini coefficient and Lorenz curve reports.
How to fill out gini coefficient and lorenz?
To fill out the Gini coefficient and Lorenz curve, one must analyze data on income or wealth distribution, calculate the relevant measures, and plot the Lorenz curve appropriately.
What is the purpose of gini coefficient and lorenz?
The purpose of the Gini coefficient and Lorenz curve is to provide insights into income or wealth inequality within a population, helping policymakers and researchers understand distribution patterns.
What information must be reported on gini coefficient and lorenz?
Information reported on Gini coefficient and Lorenz curve typically includes income or wealth data from the population under study, along with the calculated coefficients and curve plots.
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