Lorenz curve

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Lorenz curve

[′lȯr‚ens ‚kərv]
(statistics)
A graph for showing the concentration of ownership of economic quantities such as wealth and income; it is formed by plotting the cumulative distribution of the amount of the variable concerned against the cumulative frequency distribution of the individuals possessing the amount.
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References in periodicals archive ?
A loan concentration can be depicted with a Lorenz diagram, which presents a relationship between the share of the first n sectors in the portfolio structure, [T.sub.n]/[T.sub.N], and the proportion of these n sectors in the total number of economic sectors, n/N, where [T.sub.n] = [n.summation over (i=1)] [G.sub.i].
Analysing the Lorenz diagram, this function could be derived from the following expression:
Consequently, according to the Lorenz diagram, one has to minimize the following function: