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lectures/inequality.md

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### Some history
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Many historians argue that inequality played a key role in the fall of the
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Roman republic.
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Roman Republic.
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After defeating Carthage and invading Spain, money flowed into Rome and
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greatly enriched those in power.
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The resulting growth in inequality caused political turmoil that shook the
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foundations of the republic.
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Eventually the Roman republic gave way to a series of dictatorships, starting
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Eventually the Roman Republic gave way to a series of dictatorships, starting
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with Octavian (Augustus) in 27 BCE.
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This history is fascinating in its own right, and also because we can see some
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To aid our interpretation, suppose that we are measuring wealth
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* $w_1$ is the wealth of the poorest member of the population
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* $w_n$ is the wealth of the richest member of the population
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* $w_1$ is the wealth of the poorest member of the population and
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* $w_n$ is the wealth of the richest member of the population.
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The curve $L$ is just a function $y = L(x)$ that we can plot and interpret.
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In each case we set $\mu = - \sigma^2 / 2$.
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This implies that the mean the distribution does not change with $\sigma$.
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This implies that the mean of the distribution does not change with $\sigma$.
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(You can check this by looking up the expression for the mean of a lognormal
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distribution.)

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