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Brazil China Chile United States South Africa Czech Republic 10 20 30 40 50 60 Source: Credit Suisse Global Wealth Report 2016 The Lorenz Curve Numerical example -> Assignment No. 1 Assume that country A has only the following four income groups below. Draw the Lorenz Curve for the income distribution in country A using the intermediate steps on the next slide. Income Number of people 100 50 500 20 750 20 2000 10 15 The Lorenz Curve Numerical example (Assignment No. 1) > Intermediate steps: 1. Calculate the relative population shares and cumulated population shares of the four income groups. 2. Calculate the relative income shares and cumulated income shares of the four income groups. Share of income requires calculation of total income: 100*50+500*20+750*20+2000*10=50000 3. Draw the Lorenz Curve using your results of steps 1 and 2. Income Number Share of Cumulated Share of Cumulated of people population share of income share of population income 100 50 500 20 750 20 2000 10 16