Tuesday, November 27, 2012

Lorenz curve

Lorenz curve

Source- http://www.sarpn.org/documents/d0000990/

Lorenz curve which plots the perfect equality of wealth distribution as well as the reality line which is the lorenz curve. The difference between the lines is measured by the amount of discrepancy between what we view as perfect and what is actually perfect. The pattern above is that less household get more of an income when compared to the line of perfect equality. 

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