Lorenz Ratio: We calculate Lorenz Ratio
as follows:
Lorenz Ratio: We calculate Lorenz Ratio
as follows:
LR = 1 -
Now, from BBS income data collected from Naogaon in 1996, we had the following data-
|
|
Surve- yed house holds |
% house hold ( P ) |
Income |
Percent share of aggregate income |
Cumulative percent share aggregate income (Q) |
|
P * ( |
|
<1000 |
39 |
7.815631 |
56126.36 |
2.651800 |
2.651800 |
2.651800 |
20.72549 |
|
1000-2000 |
179 |
35.871743 |
290124.32 |
13.707491 |
16.359290 |
19.011090 |
681.96095 |
|
2001-3000 |
107 |
21.442886 |
281048.35 |
13.278679 |
29.637969 |
45.997260 |
986.31399 |
|
3001-4000 |
56 |
11.222445 |
225586.54 |
10.658277 |
40.296247 |
69.934216 |
784.83289 |
|
4001-5000 |
32 |
6.412826 |
162442.64 |
7.674920 |
47.971167 |
88.267413 |
566.04353 |
|
5001-6000 |
22 |
4.408818 |
115243.11 |
5.444886 |
53.416053 |
101.38722 |
446.99776 |
|
6001-7000 |
11 |
2.204409 |
64389.11 |
3.042189 |
56.458242 |
109.87429 |
242.20787 |
|
7001-8000 |
15 |
3.006012 |
136743.99 |
6.460737 |
62.918980 |
119.37722 |
358.84936 |
|
8000+ |
38 |
7.615230 |
784834.07 |
37.081020 |
100 |
162.91898 |
1240.66558 |
|
Total |
499 |
100 % |
2116538 |
100 % |
|
|
5328.597 |
Now, LR = 1 -
(20.72549 + 681.96095 + 986.31399 + 784.83289 + 566.04353 +
446.99776 + 242.20787 + 358.84936 + 1240.66558)
= 1 -
(5328.597)
= 0.4671403
See the S-plus / R codes used to calculate this result of the Lorenz Ratio.
Now, from BBS expenditure data collected from Naogaon in 1996, we had the following data-
|
|
Surve- yed house holds |
% house hold ( P ) |
Expenditure |
Percent share of aggregate expenditure |
Cumulative percent share aggregate expenditure (Q) |
|
P * ( |
|
<1000 |
39 |
7.815631 |
21266.13 |
1.095387 |
1.095387 |
1.095387 |
8.561144 |
|
1000-2000 |
179 |
35.871743 |
254711.65 |
13.119826 |
14.215214 |
15.310601 |
549.217951 |
|
2001-3000 |
107 |
21.442886 |
281124.15 |
14.480296 |
28.695509 |
42.910723 |
920.129727 |
|
3001-4000 |
56 |
11.222445 |
188828.04 |
9.726257 |
38.421767 |
67.117276 |
753.219928 |
|
4001-5000 |
32 |
6.412826 |
137942.38 |
7.105211 |
45.526978 |
83.948744 |
538.348661 |
|
5001-6000 |
22 |
4.408818 |
135931.97 |
7.001658 |
52.528636 |
98.055613 |
432.309317 |
|
6001-7000 |
11 |
2.204409 |
98167.24 |
5.056452 |
57.585087 |
110.11372 |
242.735661 |
|
7001-8000 |
15 |
3.006012 |
125930.71 |
6.486507 |
64.071595 |
121.65668 |
365.701448 |
|
8000+ |
38 |
7.615230 |
697523.22 |
35.928405 |
100 |
164.07159 |
1249.44300 |
|
Total |
499 |
100 % |
1941425 |
100 % |
|
|
5059.667 |
Calculating similarly for expenditure, we get-
LR = 0.4940333
|
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Institute of Statistical Research and Training University of Dhaka, Dhaka -1000, Bangladesh
|
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