Maths in economics, finance and society · Solid · Dissertation

Measuring inequality with the Gini coefficient: a maths EPQ idea

Why it works as an EPQ

Lorenz curves turn inequality into an area problem, and comparing measures gives a clear evaluation.

Scope and difficulty

Solid. Solid. One data source, two or three measures.

The maths

Builds on these A Level topics: Integration · Sampling and data · Algebra and functions.

You would learn:

• Lorenz curves
• Area and integration
• Alternative measures such as the Palma ratio

Learning maths beyond the course is expected in a maths EPQ, but you must understand and explain everything you use.

One possible plan

1. Define the Lorenz curve and Gini coefficient and calculate them for simple distributions.
2. Compute them from published income data.
3. Build distributions with the same Gini but different shapes.
4. Judge what the measure hides.

Pitfalls

• Confusing income and wealth data.
• Calculating from grouped data without saying how.

Where to start reading

• Office for National Statistics household income inequality
• Search for: Lorenz curve Gini coefficient integral

Prefer books, lecture notes, journal articles and official data to a single website, and record every source as you read (how to reference).

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All maths in economics, finance and society ideas · all 93 ideas

Your EPQ must be your own work. These pages coach: ideas, structure, checklists and planning. Submitting text, proofs, code or analysis written by someone else or by an AI tool as your own is malpractice. How to use help and AI honestly.