FIGURE 3 THE GINI COEFFICIENT
imageThe Gini coefficient is a measure of income inequality, defined as the ratio of the area between the Lorenz curve and the equal distribution line, and the total area below the equal distribution line. Thus, the Gini coefficient is equal to the ratio between area A and area (A + B). If distribution were equal, area A would be zero, and the Gini coefficient would equal zero. If distribution were as unequal as possible, area B would disappear; thus, the Gini coefficient would be 1.