vermogenscurves
Vermogenscurves, or wealth distribution curves, are graphical tools used in economics and social science to illustrate how wealth is distributed across a population. Each curve shows the cumulative share of wealth held by the population when individuals, households, or units are ordered by increasing wealth. On the horizontal axis is the cumulative share of units (from 0 to 100%), and on the vertical axis is the corresponding cumulative share of wealth (0–100%). The curve starts at (0,0) and ends at (1,1). A line of equality at 45 degrees represents perfect equality; the vermogenscurve typically lies below this line, reflecting concentration of wealth toward the top.
In many contexts the vermogenscurve is equivalent to the Lorenz curve for wealth. The more bowed the
Uses and implications: It allows comparison across countries, regions, or time periods, and informs policy analysis
Limitations: Wealth data are challenging to collect and may be incomplete due to underreporting, non-response, top-coding,
See also: Lorenz curve, Gini coefficient, Palma ratio, wealth concentration, inequality.