13. A 2006 report by the Helsinki-based World Institute for Development Economics Research concluded that the richest 1 percent of adults worldwide have 40 percent of the worlds house- hold wealth; the richest 2 percent of adults have more than half of the world's household wealth; the richest 10 percent of adults account for 85 percent of the worlds wealth; and the lowest 50 percent of the world's adult population have 1 percent of the world's wealth. Find the value of p in the Lorenz functions L,(x) = xP that best accounts for these facts. What is the Gini index for this function?

13. A 2006 report by the Helsinki-based World Institute for Development Economics Research concluded that the richest 1 percent of adults worldwide have 40 percent of the worlds house- hold wealth; the richest 2 percent of adults have more than half of the world's household wealth; the richest 10 percent of adults account for 85 percent of the worlds wealth; and the lowest 50 percent of the world's adult population have 1 percent of the world's wealth. Find the value of p in the Lorenz functions L,(x) = xP that best accounts for these facts. What is the Gini index for this function?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter19: The Macroeconomic Perspective

Section: Chapter Questions

Problem 29P: The prime interest rate is the rate that banks charge their best customers. Based on the nominal...

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