Example

Pre-Reform Income Distribution in the Hypothetical Village Model

As illustrated on the left side of Figure 5.29, the pre-reform scenario in the hypothetical village results in a specific income distribution. After the harvest is collected and rent is paid, the landowner's income is 1.75 units of grain (e.g., 1,750 kg). Each of the three sharecroppers is left with an income of 0.25 units. This level of inequality corresponds to a Gini coefficient of 0.6.

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Updated 2026-05-02

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