Exercise 2. The income distribution for the rich part of the world Table 2.4 shows GDP per
Question:
Exercise 2. The income distribution for the rich part of the world Table 2.4 shows GDP per worker (in 2000 US dollars) and population size for 1951 and 2003 for the rich part of the world (defined here as the OECD countries for which data were available). Construct Lorenz curves for the rich world for 1951 and 2003, respectively, assuming that everybody in the population earned the GDP per worker of the relevant year, and draw the two curves in one figure. Compute the Gini coefficient for each year. Comment on how inequality, or equality, among the rich has developed. Compare this to how the income distribution of the world has developed. Relate this to what you know about convergence from Section 2.3.
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INTRODUCING ADVANCED MACROECONOMICS GROWTH AND BUSINESS CYCLES
ISBN: 9780077117863
2nd Edition
Authors: PETER SORENSEN, Hans Whitta Jacobsen