Question
Consider a simple economy with 1000 citizens where 90 percent of them report an annual income of 10,000 while the remaining 10 percent report an
Consider a simple economy with 1000 citizens where 90 percent of them report an annual income of 10,000 while the remaining 10 percent report an annual income of 110,000. Draw actual and perfect Lorenz curve and highlight area which gives the Gini coefficient. What is the Gini coefficient associated with this economy?
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Introduction to Econometrics
Authors: James H. Stock, Mark W. Watson
3rd edition
133595420, 978-0138009007, 138009007, 978-0133486872, 133486877, 978-0133595420
