Saturday, July 11, 2009

Lorenz Curve

A Lorenz Curve shows an unequal distribution between two variables as a curve. The further away from a 45 degree angle, the greater the inequality.
In this example,the straight green line is the Lorenz curve of an idealized perfectly egalitarian society - where everybody has exactly the same income. The red Lorenz curve - horizontal and then vertical - is that for the extreme authoritarian or totalitarian society where one person has all the income. Curves for societies with intermediate income distributions are also shown.
http://chesters.org/marvin/GINI/index.html

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