Determining the distribution of income

Reference no: EM131798865

Question: In an effort to make the distribution of income more nearly equal, the government of a country passes a tax law that changes the Lorenz curve from y = 0.998x^2.6 for one year to y = 0.57x² + 0.43x for the next year. Find the Gini coefficient of income for each year and determine whether the distribution of income is more or less equitable after the tax law is passed. Interpret the result.

Reference no: EM131798865

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