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Demo-Gini

VIEWS: 29 PAGES: 3

									                                                       Gini Coefficient Demonstration - Income Concentration
                                                                                            Cumulative          Cumulative
                                                         Income Share     Population Share
           Distribution Range           Income (Y)                                         Income Share       Population Share
                                                             (Y)                (X)
                                                                                               (Y)                  (X)

2                  First                 R$ 1,200             10%              10%            10%                       10%
3                Second                  R$ 1,200             10%              10%            20%                       20%
4                 Third                  R$ 1,200             10%              10%            30%                       30%
5                Fourth                  R$ 1,200             10%              10%            40%                       40%
6                 Fifth                  R$ 1,200             10%              10%            50%                       50%
7                 Sixth                  R$ 1,200             10%              10%            60%                       60%
8                Seventh                 R$ 1,200             10%              10%            70%                       70%
9                Eighth                  R$ 1,200             10%              10%            80%                       80%
                  Ninth                  R$ 1,200             10%              10%            90%                       90%
                  Tenth                  R$ 1,200             10%              10%           100%                       100%
                                          12,000             100%             100%
                                                                                               120%
           Gini Coefficient                0.000                                                                                 Lorenz Curve
                                                                                               100%
                                                                                                80%
                                                                                                60%
                                                                                                40%
                                                                                                20%
              Concentration Examples:              Perfect Equality                              0%
                                                       Lorenz Curve - 0                               First


                                                                                                               Second




                                                                                                                                  Fourth
                                                                                                                         Third
    Compiled by Rafael Alves Gutierrez Montenegro, Economics Student
    PUC-SP, Pontifícia Universidade Católica de São Paulo, Brazil
    Department of Economics
    rafaelgmt@gmail.com
me Concentration

              |X-Y|          Xk+1 – Xk (A)                      Yk+1 + Yk (B)   A*B                   Average       Small concentration
                                                                                           High concentration concentration


                   0%                 10%                           10%         1%     1         180          1200         1200

                   0%                 30%                           10%         3%               350          1200         1200

                   0%                 50%                           10%         5%               450          1200         1200

                   0%                 70%                           10%         7%               1200         1200         1200

                   0%                 90%                           10%         9%               2300         2300         2300

                   0%                 110%                          10%         11%              4000         3500         2900

                   0%                 130%                          10%         13%              6500         5000         3500

                   0%                 150%                          10%         15%             10323         6000         4000

                   0%                 170%                          10%         17%             15000         7000         4500

                   0%                 190%                          10%         19%             26000         7500         4500

                   0%                                                           100%

    Lorenz Curve - 0
                            Seventh
           Fifth


                    Sixth




                                                Ninth


                                                        Tenth
                                       Eighth
Perfect Equality


     1200            1      Perfect Equality

     1200            2    Small concentration

     1200            3   Average concentration

     1200            4     High concentration

     1200     Perfect Equality

     1200

     1200

     1200

     1200

     1200

								
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