Abstract
This paper presents a physical model of the Gini coefficient and its corresponding Lorenz curve. If the Lorenz curve is scaled to 1, then 1 represents gross domestic income, gross domestic product, or societal wealth. The value 1 also represents total population. On these assumptions, the value of x ∈ [0, 1] where the first derivative of the Gini coefficient equals one represents the population quantile that enjoys per capita income or wealth. This paper also describes methods for evaluating the internal asymmetry of any distribution corresponding to a particular Gini coefficient. It concludes with worked examples from Oxfam’s survey of global inequality and from French data on wealth inequality.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have