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Assignment on

GINI COEFFICIENT & LORENZ CURVE

Prepared for:
Professor Dr. Muhammad Ziaulhaq Mamun
Course Instructor: Managing Operations

Prepared by:
Khondokar Abu Saleheen
MBA, 53D
Roll: ZR-14

Institute of Business Administration
University of Dhaka

April 25, 2016

a straight diagonal line on a graph .or the bottom 40%. Inequality on the Gini scale is measured between 0. showing the reality of wealth distribution.which does. where all the country's income is earned by a single person. “The Gini coefficient provides an index to measure inequality”. It is a way of comparing how distribution of income in a society compares with a similar society in which everyone earned exactly the same amount.the Palma ratio . where everybody is equal. the Lorenz curve lies beneath it. and 1. Lorenz Curve for Bangladesh (2010) 120 100 80 60 40 20 0 0 20 40 60 80 100 120 .(1) Lorenz Curve: The Lorenz curve is the graphical representation of wealth distribution developed by American economist Max Lorenz in 1905. Sumner and colleague Alex Cobham put forward an alternative .Gini Coefficient: Italian statistician Corrado Gini invented the Gini Coefficient. and it's very technically sound if you want to measure income inequality across the whole population. London. "The Gini has been around for a very long time. On the graph. The difference between the straight line and the curved line is the amount of inequality of wealth distribution." explains Andy Sumner. The difference between this hypothetical line and the actual line produced of people's incomes is the Gini ratio. According to Antonio Cabrales.in 1905. "But one might say the Gini is oversensitive to changes in the middle. As a result. a figure described by the Gini coefficient. and under sensitive at the extremes. The United Nations (UN) uses this coefficient in their annual ranking of nations." The coefficient doesn't capture very explicitly changes in the top 10% . Gini developed his coefficient in 1912. who published a hypothetical way to depict total equality .which has become the focus of much inequality research in the past 10 years . a straight diagonal line represents perfect equality of wealth distribution. a professor of economics at University College London. building on the work of American economist Max Lorenz. where most poverty lies. director of the International Development Institute at Kings College.

8056 0. fortune. What.] http://www.com. thelocal.249 Total 0.dk.] fortune.452 Rural 0. BBC Magazine. Why: What is the Gini coefficient? [Online] 2015.com/2015/09/30/america-wealth-inequality/. Statistics. 2016. Report of the Household Income & Expenditure Survey. and Denmark: Table: Gini Coefficient for Bangladesh.Figure: Lorenz Curve for Bangladesh (2010) Gini Coefficient for Bangladesh.458 Reference: 1. AFP.431 0. Bangladesh Bureau of.] http://www. 2015. Country Bangladesh (2010)(2) USA (2015)(3) Sweden (2013)(4) Gini Coefficient Urban 0.thelocal. Erik.bbc. [Online] May 21. 2010. America is the richest. 4. Sherman. Who. 2016. 3. [Cited: April 24. . [Online] September 30. [Cited: April 24. 2016. p. 2. Monitor. 30.com/news/blogs-magazine-monitor-31847943. [Cited: April 24. country. and Denmark. 2015.dk/20150521/denmark-has-lowest-inequality-among-oecd-nations. Denmark has OECD's lowest inequality. and most unequal. USA. USA.