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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In order to calculate seasonal concentration in tourist arrivals and overnights a combination of measurement methods including Seasonality ratio, Lorenz curve and Gini coefficient were applied to measure the degree of seasonality and compare the degree of seasonality between years.
When income becomes more evenly distributed, the Lorenz curve becomes flatter, area A becomes smaller and die Gini index value approaches zero.
Based on the score the data obtained was used to calculate Sorenson's similarity coefficient, Shannon's diversity index (11), Range weighted richness (12), Pielou's evenness index (13), Pareto Lorenz curve (14) and Moving window analysis (15).
Related parametric measures of income inequality like Gini index, generalized entropy measure, two percentile ratios and Lorenz curve illustrate that income inequality is increased in the province of Punjab during the years 2004-2008.
This permits us to describe and quantify inequality with standard tools such as the Lorenz curve and the Gini coefficient.
According to the Lorenz curve diagram, the income share of the poorest pth quintile of the population serves for this purpose, and can be expressed as
Similar to an Edgeworth Box, Max Lorenz created the Lorenz Curve in 1905 in order to show the percentage of income (the y-axis in Figure 1) held by a certain percentage of the population (the x-axis in Figure 1).
This article extends the Lorenz curve and Gini index by ordering insurance risks; the ordering variable is a risk-based score relative to price, known as a relativity.
He has presented papers on a wide range of topics, comprising Malthus's theory of unemployment, Sismondi's analysis of laissez-faire, Hobson's critique of the marginal productivity theory of distribution, the history of the 'Wages Fund' controversy, early critics of economic rationalism, the history of writings on the distribution of wealth, the origins of the Lorenz Curve and the Gini Coefficient, Malthus's macroeconomic model, and the history and nature of the concept of positional goods, as well as offering short presentations on Keynesian income determination diagrams and Hobson's legacy 150 years after his birth.
To further understand the Gini coefficient, reference may be made to the Lorenz curve, named after the US economist Max Lorenz (1876-1959), whose paper in 1905 represents the first method for estimating the Gini coefficient.
The evidence of the income disparity rampant in Pakistani society is bolstered by statistics, with the Lorenz curve of 2001-02 for Pakistan lying below the 1984-85 levels.