A New Paradigma for the Research of Inequality: Pareto Structure vs. Lorenz Curve
The author suggests an idea about a new principle (law) - the equality of the relative change in the system space.Because of the new principle, he propose a new paradigma for a holistic point of view at the Hamonic Pareto curve. The next step is introducing discrete Pareto structures with related probability distributions. These tools give a theoretical solution to empirical distributions in many practical situations.The author explains the possibility of correct interpretation of two very popupar tools - Lorenz curve and Gini coefficient - together with deeper analysis of the level of inequality. Graphical presentations of the examples and comparative analysis with the last data of UN have been provided. Some ideas about possible applications have been developed.
Keywords: Inequality, Harmonic Structure, Ambisectric, Lorenz Curve, Gini Coefficient(index), Distribution
Dr Visvaldis Briedis
Assoc. Prof., Faculty of economics and management