How does progressive taxation and redistribution policies affect the Lorenz curve and Gini coefficient?

Question

Quizplus · Accepted Answer

Progressive taxation and redistribution policies are designed to reduce income inequality by taxing higher income individuals at a higher rate and redistributing income to lower income individuals. This results in a more equal distribution of income, which is represented by the Lorenz curve becoming less curved (indicating a distribution closer to perfect equality) and a decrease in the Gini coefficient (indicating reduced income inequality).

How Does Progressive Taxation and Redistribution Policies Affect the Lorenz