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Excel: Lorenz Curve and Gini Coefficient - Full Tutorial 4 года назад


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Excel: Lorenz Curve and Gini Coefficient - Full Tutorial

This video tutorial shows, how to draw the Lorenz Curve in Microsoft Excel and afterwards, it's shown how to calculate the Gini Coefficient. You are most likely here, because you are a student of economics. If you want to boost your career/increase your job chances, I'll recommend you to learn RPA (software robots), which is automation of processes. With an RPA tool you can automate everything a human can do and it is really easy. The following two video tutorials take you from a beginner to being able to create your own scripts. UiPath or Power Automate, if you dont know, what to chose, I would go with UiPath: 🔵 UiPath RPA Beginners Tutorial -    • UiPath RPA Beginners Tutorial [2020]   🔵 Power Automate for Beginners -    • Microsoft Power Automate Tutorial for...   0:12 Presenting the Lorenz/Gini Case Our data set is 5 regions with population and income for each. If your data is in absolute numbers, you need to have them in %. We store the data in our Excel sheet. 0:45 Calculating the income to population share We divide the percentage of income by the percentage of population. A high number means a high income per capita for that region and similarly a low number means a low income per capita for the region. Finally sort the data from the smallest to the biggest, giving us the poorest region first. 1:45 Calculating the cumulative population and income Calculate the cumulative population and income. 2:29 Draw the Lorenz curve in Excel Mark the data, click Scatter, click Scatter with Smooth Lines and Markers. This gives you the raw Lorenz curve. 2:41 Fine tuning our Lorenz curve Fix the max of the axis. Have the units in 10% increments. Make a chart title. Give the Lorenz curve a name. Axis titles. 4:10 Make an equality curve This is how the Lorenz curve looks like, if everyone had the same income (= the regions are all equal). 5:01 Calculating the Gini coefficient The gini coefficient is a statistical measure, that represents the income inequality withing a group of people (e.g. a nation, a region etc.). 5:22 Calculating the area under the Lorenz curve 6:44 Calculating the area between the inequality curve and the Lorenz curve Connect with me: 💼 LinkedIn -   / andersjensens   👥 Facebook -   / andersjensenorg   💌 Email Newsletter - https://andersjensen.org/email-newsle... #excel #statistics

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