What is a limitation of Lorenz curves?

If two Lorenz Curves intersect, it is not possible to determine which distribution has more inequality. In the lifetime of an individual, there will be variation in income and this variation is not taken into consideration when inequality in the Lorenz Curves is analyzed. These are the limitations of the Lorenz Curves. You can read about the Lorenz Curve: Definition, Explanation and Relevant Questions in the given link.

Further readings:

  1. Gini Coefficient – Definition, Calculation and India’s Rankings
  2. Income Inequality In India: Background, Factors and Conclusion

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