MathLiveGini coefficient
Computes the Gini coefficient, a single number between 0 and 1 measuring how unequally income or wealth is distributed, from cumulative population shares X and cumulative income shares Y. A value of 0 means perfect equality and values near 1 mean extreme inequality.
G=\left|1-\sum_{k=1}^{n}(X_k-X_{k-1})(Y_k+Y_{k-1})\right|What the symbols mean
| Gini coefficient, dimensionless | |
| number of population groups or data points | |
| cumulative share of the population up to group k | |
| cumulative share of income or wealth held by the population up to group k | |
| starting cumulative population share, equal to 0 | |
| starting cumulative income or wealth share, equal to 0 |
About this formula
- FieldEconomics and finance
- TopicInequality measures
- LevelUniversity
- Also calledGini index, Gini inequality measure, income inequality formula, wealth inequality coefficient, Lorenz curve area formula, Gini coefficient formula
- SourceWikidata Q162455
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