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The government of a small country is planning sweeping changes in the tax structure in order to provide a more equitable distnbution of income. The

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The government of a small country is planning sweeping changes in the tax structure in order to provide a more equitable distnbution 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. for) = x\" Current Lorenz curve . g(x) = 6.7x + 0.3)(2 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 ' 1 The current Gini index is given by 2I(D (IX and the projected Gini index is given by ZJGD dx. 0 sit \\

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