The government of a small country is planning sweeping changes in the tax structure in order to provide a more equitable distribution of income. The Lorenz curves for the current income distribution and for the projected income distribution after enactment of the tax changes are as follows, f ( x ) = x2.4 Current Lorenz curve g (x) = 0.7x +0.3x2 Projected Lorenz curve after changes in tax laws Find the Gini index of income concentration for each Lorenz curve. Will the proposed changes provide a more equitable income distribution? Explain. Identify the integrand for the computation of the current and projected Gini indices. 1 The current Gini index is given by 2 dx and the projected Gini index is given by 2 dx. 0