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Homework.docx

1. Consider the following income distribution in a hypothetical country.

Household

Income $

1

37

2

43

3

16

4

8

5

36

6

41

7

71

8

13

9

93

10

98

11

37

12

54

13

52

14

12

15

54

16

96

17

12

18

78

19

53

20

96

a. What is the decile distribution of income?

b. What is the quintile distribution of income?

c. What is the quartile distribution of income?

d. Using decile distribution draw the Lorenz Curve.

2. Go to the following database of the Worldbank.

Download data on GDP Per Capita in US$ for all countries.

Download data on Gini Coefficient from 2010 to 2020 for all countries.

a. Choose 10 poorest countries and 10 richest countries. Fill out the following table for any latest year when the data is available.

Poorest Countries

Country

Latest Year (Data Available)

Per Capita Income

Gini Coefficient

1

2

3

4

5

6

7

8

9

10

Richest Countries

Country

Latest Year (Data Available)

Per Capita Income

Gini Coefficient

1

2

3

4

5

6

7

8

9

10

b. Comment on your results.

c. What is the Gini Coefficient for USA?

d. How does it compare with countries in the above table?

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