I have some data with asset holdings (wealth) of a large group of people. I want to compute the Lorenz curve and Gini coefficient of my population. The problem is that a large fraction of people have negative wealth.
Say I have wealth that ranges from -1 to 4. About 50% of people have 0 or less wealth. The other remaining households have positive values. In this imaginary country, for every lender we have a borrower, so if we add all of the wealth of everybody we would get a total net wealth of zero. How can I compute the Lorenz curve?
My intuition, which I suspect is wrong, is to move the mass of people with negative wealth to zero. That is, the Lorenz curve only starts to move upwards from 0.5 on the x axis onward. Do you have any suggestions or example?