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Revision as of 02:18, 23 September 2001
The Gini coefficent was developed by the Italian statistician Corrodo Gini. It is a measure of the income inequality in a society.
The Gini coefficent is a number between 0 and 100, where 0 means perfect equality (everyone has the same income) and 100 means perfect inequality (one person has all the income, everyone else earns nothing.)
While the Gini coefficent is normally used to measure income inequality, it can be used to measure inequality of assets as well.
The Gini coefficent is calculated using the Lorenz curve: the Gini coefficent is the area between the line of perfect equality and the lorenz curve, as a percentage of the area between the line of perfect equality and the line of perfect inequality.