4. An economist produced the following Lorenz curves for the current income distribution and the projected income distribution 10 years from now in a certain country: f(x) = 0.15x+0.85x g(x) = x6 Current Lorenz curve: Projected Lorenz curve: Compute the Gini index of income concentration ( to 2 decimal places ) for the current and projected curves. What can you say about the distribution of income 10 years from now? Is it more equitable or less?
4. An economist produced the following Lorenz curves for the current income distribution and the projected income distribution 10 years from now in a certain country: f(x) = 0.15x+0.85x g(x) = x6 Current Lorenz curve: Projected Lorenz curve: Compute the Gini index of income concentration ( to 2 decimal places ) for the current and projected curves. What can you say about the distribution of income 10 years from now? Is it more equitable or less?
Chapter12: Income Distribution, Poverty, And Discrimination
Section: Chapter Questions
Problem 1SQP
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