Lorenz Curve: Meaning, Construction, and Application
What is Lorenz Curve?The variability of a statistical series can be measured through different measures, Lorenz Curve is one of them. It is a Cumulative Percentage Curve and was first used by Max Lorenz. Generally, Lorez Curves are used to measure the variability of the distribution of income and wealth. Hence, Lorenz Curve is the measure of the deviation of the actual distribution of a statistical series from the line of equal distribution. The extent of this deviation is known as Lorenz Coefficient. If the distance…