Question

UNTUUUUUIJC_JU-_0003_larvitem=cont... 7 The table shows three alternative distributions of land ownership in a village with 100 people and 100 hectares of la cases I and III calculate the Gini. For case II, show on the Lorenz curve diagram how the Gini coefficient can be calo The Economy. Casel 77 people own nothing 23 people own 4.35 hectares each Case II 38 people own nothing 36 people own 1 hectare 26 people own 2.46 hectares each each 100 people own 1 hectare Case III each. (a) What is the Gini for Case I (between 0 and 1, within two decimal places, e.g. 0.12)? Make sure you round correctly. (b) What is the Gini in Case II? (between 0 and 1, within two decimal places, e.g. 0.34)? Make sure you round correctly. (c) What is the Gini in Case III? (between 0 and 1, within two decimal places e.g. .99)? Make sure you round correctly. MacBook Pro esc Q透過 Search 搜尋 3 $ 4 % 5 - 6 & 7 - 8 19 10

Please answer the question (a), (b), (c) thanks.

Answer 1

Score is calculated as = % of income * (%of people + 2 * % of population that is richer)

Date очо е до во орум A 100 №1 / и о ир до о 7 of (0 ро ) - tv Population

a)

% of people	% of land	% of population that is richer	Score
0.77	0	1	0
0.23	1	0	0.23

Gini = 1 - Sum of Score = 1 - 0.23 = 0.77

Lorenz curve is ABC in the above picture attached.

b) As 36 people owns 1 hectare each which makes total land = 36 hectares thus their % of land is 36%

26 people owns 2.46 hectares each making 63.96 of total land thus their % of land is 64%

% of people	% of land	% ofpopulation that is richer	Score
0.38	0	0.62	0
0.36	0.36	0.26	0.31
0.26	0.64	0	0.16

Gini = 1 - Sum of Score = 1 - 0.31 - 0.16 = 0.53
Lorenz curve is ABCD in the above picture attached.

c)

% of people	% of land	% of population that is richer	Score
1	1	0	1

Gini = 1 - Sum of Score = 1 - 1 = 0