Gini coefficient

related topics
{rate, high, increase}
{math, number, function}
{theory, work, human}
{company, market, business}
{math, energy, light}
{area, part, region}
{government, party, election}
{household, population, female}

The Gini coefficient is a measure of statistical dispersion developed by the Italian statistician Corrado Gini and published in his 1912 paper "Variability and Mutability" (Italian: Variabilità e mutabilità)[1] [2]

The Gini coefficient is a measure of the inequality of a distribution, a value of 0 expressing total equality and a value of 1 maximal inequality. It has found application in the study of inequalities in disciplines as diverse as economics, health science, ecology, chemistry and engineering.

It is commonly used as a measure of inequality of income or wealth.[3] Worldwide, Gini coefficients for income range from approximately 0.23 (Sweden) to 0.70 (Namibia) although not every country has been assessed.

Contents

Definition

The Gini coefficient is usually defined mathematically based on the Lorenz curve, which plots the proportion of the total income of the population (y axis) that is cumulatively earned by the bottom x% of the population (see diagram). The line at 45 degrees thus represents perfect equality of incomes. The Gini coefficient can then be thought of as the ratio of the area that lies between the line of equality and the Lorenz curve (marked 'A' in the diagram) over the total area under the line of equality (marked 'A' and 'B' in the diagram); i.e., G=A/(A+B).

Full article ▸

related documents
Analysis of variance
IS/LM model
Reaganomics
Poll tax
Kaldor-Hicks efficiency
Measures of national income and output
Tax Reform Act of 1986
Simpson's paradox
Full employment
Tax Freedom Day
Uncertainty
New Keynesian economics
Saving
Income tax
Utility
Pareto efficiency
Percentage
Income
Life expectancy
SAT
Meta-analysis
Net present value
Value at risk
Internal rate of return
Effect of taxes and subsidies on price
Infant mortality
Medicaid
Economist
Gary Becker
Sunk costs