Lorenz Curve Assignment

Lorenz Curve Assignment - Gini index of income inequalities...

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Margulies - 132 00 2404 Dana Margulies Professor Jeffrey Rubin: Microeconomics - Spring 2011 Lorenz Curve Assignment May 2, 2011 1. Referring to the position of the two Lorenz Curves, very briefly explain what happened to the distribution of income between 1970 and 2009 and explain why you reach this conclusion. The distribution of wealth became more unequal from 1970 to 2009. I reached this conclusion because the 2009 curve is bowed out more; this means that fewer households own more of the wealth now than in the past. 2. List the Gini Coefficients for both 2009 and 1970 and indicate whether the change in these coefficients is consistent with the story you get on inequality by looking at the Lorenz Curves.
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Unformatted text preview: Gini index of income inequalities (1970): 0.394 Gini index of income inequalities (2009 ): 0.468 Gini Coefficients signifies the inequality based on the Lorenz Curve. Zero meaning that the curve is equal, and one meaning that it is not equal at all. The Gini Coefficients of 1970 and 2009 accurately reflect my graph because the 2009 Gini coefficient is larger than the 1970 coefficient. The graph correctly depicts these numbers because the 2009s curve being bowed out more than the 1970s curve. Margulies - 132 00 2404 Margulies - 132 00 2404 Data 2009 1970 0% 20% 3.4% 4.1% 40% 12.0% 14.9% 60% 26.6% 32.3% 80% 49.8% 56.8% 100% 100.1% 100.1%...
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This note was uploaded on 05/05/2011 for the course ECON 102 taught by Professor Yotsubo during the Spring '08 term at Rutgers.

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Lorenz Curve Assignment - Gini index of income inequalities...

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