The Gini – coefficient
The Gini coefficient (Gini index or Gini ratio) is a statistical measure of economic inequality in a population. It is the ratio of the area between the line of perfect equality and the Lorenz curve to the total area of the square below the Lorenz curve.in on income distribution curve
In the figure above, the Gini – coefficient is the ratio of the shaded area to the total area of the triangle OAB
Gini coefficient =
The gini – coefficient varies from zero to one. The higher the coefficient, the higher the degree of income inequality.
CATEGORIES Economics
TAGS Dr. Bbosa Science
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