(a) Draw a Lorenz curve and calculate the Gini coefficient for the wealth data in Chapter 1 (Table 1.3).

(b) Why is the Gini coefficient typically larger for wealth distributions than for income distributions?

Table 1.3

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Class interval Numbers (thousands) 0-9 999 3 417 10 000-24 999 1 303 25 000-39 999 1 240 40 000-49 999 714 50 000-59 999 642 1 361 1 270 60 000-79 999 80 000-99 999 100 000-149 999 2 708 1 633 1 242 150 000-199 000 200 000-299 000 300 000-499 999 870 500 000-999 999 367 1 000 000-1 999 999 125 2 000 000 or more 41 Total 16 933