good explanations !

M3. The Lorentz curve is a graph showing the proportion of overall income assumed by the bottom x% of the population. Cumulative share of income Lorentz curve Line of equality (45 degrees) B O Cumulative share of people from lowest income The Gini coefficient, G, measures inequality and is equal to the ratio of the area between the line of equality and the Lorentz curve (area A) and the total area under the line of equality. G =- A+B Chotikapanich (1993) suggested the following functional form for the Lorentz curve: L = eax-1 Using data from Abu-Dhabi, Abdalla and Hassan (2004) estimated that a ~ 3. Find the value of the Gini coefficient implied by this estimate