Lorenzkõver

The Lorenzkõver, often referred to as the Lorenz curve in English, is a graphical representation of income or wealth distribution. It was developed by the American statistician and sociologist Max Lorenz in 1905. The curve plots the cumulative proportion of total income or wealth against the cumulative proportion of the population, ordered from lowest to highest income or wealth.

On a Lorenz curve, the x-axis represents the cumulative percentage of the population, and the y-axis represents the cumulative percentage of the total income or wealth held by that population. A perfectly equal distribution would be represented by a straight diagonal line, known as the line of perfect equality, where the bottom x% of the population holds x% of the total income. The further the Lorenz curve deviates from this line, the greater the inequality in distribution.

The area between the line of perfect equality and the Lorenz curve is often used to calculate the Gini coefficient, a widely used measure of income inequality. A higher Gini coefficient, derived from a more pronounced curve, indicates a higher degree of inequality. The Lorenzkõver is a valuable tool for visualizing and comparing income and wealth disparities across different countries or over time. It helps policymakers and researchers understand the extent of inequality and its potential social and economic implications.