The Lorenz Curve

Requires a Wolfram Notebook System

Interact on desktop, mobile and cloud with the free Wolfram CDF Player or other Wolfram Language products.

Requires a Wolfram Notebook System

Edit on desktop, mobile and cloud with any Wolfram Language product.

A Lorenz curve plots the cumulative percentages of total wealth owned against the cumulative number of individuals in a country, starting from the poor and going to the rich. The Gini index measures the area between the Lorenz curve and a hypothetical line of absolute equality, expressed as a fraction of the maximum area under the line. Thus a Gini index of 0 represents perfect equality, while an index of 1 represents perfect inequality. Use the sliders in this Demonstration to see that different Lorenz curves can have the same Gini index and to see what each point in a given Lorenz curve means in terms of the percentage of wealth owned by the poorest.

Contributed by: José Luis Gómez-Muñoz (June 2014)
Open content licensed under CC BY-NC-SA


Snapshots


Details

Reference

[1] CIA, "Country Comparison: Distribution of Family Income—Gini Index," in The World Factbook 2013–2014, Washington, DC: Central Intelligence Agency, 2013. www.cia.gov/library/publications/the-world-factbook/rankorder/2172rank.html.



Feedback (field required)
Email (field required) Name
Occupation Organization
Note: Your message & contact information may be shared with the author of any specific Demonstration for which you give feedback.
Send