I have an exam tomorrow in advanced development economics, and I'm a little confused how to calculate the gini
coefficient by hand. I understand that you start with a data set and sort it by income. Then you compute the share that goes to each income and compute the cumulative shares of income (y-axis of lorenz curve). And then you calculate the cumulative population (x-axis of lorenz curve), but how do you calculate the gini coefficient once I've drawn the lorenz curve? I heard there's a trapezoidal method you can use where you find the area under the curve, but I don't know how to do it. Please let me know if you can help! Thank you!!
Recently Asked Questions
- Indicate whether the following statement is true or false and then EXPLAIN why. The cross price elasticity of demand for complement goods is usually negative.
- Indicate whether the following statement is true or false and then EXPLAIN why. If the demand for airplane travel is elastic, then a reduction in the price of
- Question 9 Which of the following was suggested by Keynes to move the economy out of depression? a. Capitalism and laissez-faire b. Expansionary monetary and