Noun
Lorenz curve (plural Lorenz curves)
(economics) A graph that shows the proportion of overall income or wealth of the bottom percentage of people, often used to represent economic inequality.
Alternate expressions In some cases, this equation can be applied to calculate the Gini coefficient without direct reference to the Lorenz curve. Source: Internet
Alternatively, for a cumulative distribution function F(x) with inverse x(F), the Lorenz curve L(F) is directly given by: : The inverse x(F) may not exist because the cumulative distribution function has intervals of constant values. Source: Internet
In that case, the Gini coefficient can be approximated by using various techniques for interpolating the missing values of the Lorenz curve. Source: Internet
Note however that a Lorenz curve for net worth would start out by going negative due to the fact that some people have a negative net worth because of debt. Source: Internet
Properties A practical example of a Lorenz curve: the Lorenz curves of Denmark, Hungary, and Namibia A Lorenz curve always starts at (0,0) and ends at (1,1). Source: Internet
The Lorenz curve is invariant under positive scaling. Source: Internet