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Economists use Lorenz curves to illustrate the distribution of income in a country. Letting x represent the percent of families in country and y the
Economists use Lorenz curves to illustrate the distribution of income in a country. Letting x represent the percent of families in country and y the percent of total income, the model y = x would represent a country in which each family had the same income. The Lorenz curve, y = f(x), represents the actual income distribution. The area between these two models, for 0 SXS 100, indicates the "Income inequality of a country. In 2013, the Lorenz curve for a country could be modeled by y = (0.00069x2 + 0.0130x + 1.723), Os*
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