The income distribution for a certain country in 1996 was estimated by the function f(x) =0.66x2 +0.34x. In 2000 the income distribution was estimated by the function f(x) = 0.3x0.72x2 -0.02x3a. Find the coefficient of inequality for each of the years7.b.Which year had a more equitable income distribution? Why?

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Asked Nov 21, 2019
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The income distribution for a certain country in 1996 was estimated by the function f(x) =
0.66x2 +0.34x. In 2000 the income distribution was estimated by the function f(x) = 0.3x
0.72x2 -0.02x3
a. Find the coefficient of inequality for each of the years
7.
b.
Which year had a more equitable income distribution? Why?
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The income distribution for a certain country in 1996 was estimated by the function f(x) = 0.66x2 +0.34x. In 2000 the income distribution was estimated by the function f(x) = 0.3x 0.72x2 -0.02x3 a. Find the coefficient of inequality for each of the years 7. b. Which year had a more equitable income distribution? Why?

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Expert Answer

Step 1

Income distribution defines the two-parameter model for the Lorenz Curve which shows the cumulative percentage of national income held by the bottom % of the population. The L(x) curve gives the graphical representation of the distribution of income and thus depicts income in equality present in an economy.

Step 2

The equation (1) gives income distribution function of estimated L(X) for the year 1996.

And equation (2) gives the income distribution in 2000.

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L(x) f(x) 0.66 0.34x. .(1) + .2) f(x) 0.3x+ 0.72x2 -0.02x?.. L(x)

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Step 3

To calculate Gini coefficient that gives the inequ...

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1 G=2x-L(xx G = 0

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