ECON 313 Lecture Notes - Lecture 1: Lorenz Curve, Income Distribution
31 Jan 2018
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Document Summary
Measuring inequality - income distribution decile (tenth) quintiles ( fths) quartiles (fourths) Lorenz curve could be very helpful for income distribution but dif cult to represent each inequality top 20% population (80%~100% population)(1-0. 6) The overall equality increase exclude africa, gini coef cient decrease, a lot of improvement (usa contribute more improving equality than a rca. Take out africa, the inequality is actually lower, so equality in africa increase. Take out usa, the equality of world is even greater, It could be hard to identify poor among people: cash transfer, a little incentive to change your behaviour, national capital. How to identify the poor: housing effect, basically give household, T=f(y)0 income before policy and income after policy. We move everybody below the poverty line and above the poverty line. Total cost = z n (not tax anybody here)
