random PAM 203 stuff - perfect equality and the line of...

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Random Facts and Concepts for PAM 203 Lorenz Curve is a graphical representation of the cumulative distribution function of a probability distribution ; it is a graph showing the proportion of the distribution assumed by the bottom y % of the values. It is often used to represent income distribution, where it shows for the bottom x % of households, what percentage y % of the total income they have. The percentage of households is plotted on the x -axis, the percentage of income on the y -axis. It can also be used to show distribution of assets . In such use, many economists consider it to be a measure of social inequality . Every point on the Lorenz curve represents a statement like "the bottom 20% of all households have 10% of the total income." Gini Coefficient The Gini coefficient is the area between the line of perfect equality and the observed Lorenz curve, as a percentage of the area between the line of
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Unformatted text preview: perfect equality and the line of perfect inequality. (This equals two times the area between the line of perfect equality and the observed Lorenz curve.) The higher the coefficient, the more unequal the distribution is. Hoover Index Measures the evenness of how well a population is spread out Net Migration Difference of immigrants and emigrants of an area in a period of time. A positive value reflects that there are more people entering than leaving a negative value implies the opposite. Dissimilarity Index Measures the percentage of whites that would have to move into a neighborhood with another minority in order to create even distribution between the races. Example: dissimilarity index of 40 means 40% of whites would have to move to another neighborhood in order to make whites and another minority evenly distributed. The lower the dissimilarity index the more assimilated...
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random PAM 203 stuff - perfect equality and the line of...

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