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The Gini coefficient of inequality is a measure of how uneven or unequal a distribution is.  The ratio varies between no inequality (0) and complete inequality (1).  The '''Gini index''' is the Gini coefficient multiplied by 100, like a percentage.

The Gini coefficient of inequality is a measure of how uneven or unequal a distribution is.  The ratio varies between complete equality (0) and complete inequality (1).  The '''Gini index''' is the Gini coefficient multiplied by 100. It is commonly used to evaluate the distribution of incomes in an economy.

On a [[Lorenz diagram]], the Gini coefficient of inequality equals the area between the Lorenz curve and the diagonal line divided by the entire area that lies underneath the diagonal line.<ref>http://people.hofstra.edu/geotrans/eng/ch4en/meth4en/ch4m1en.html</ref>

On a [[Lorenz diagram]], the Gini coefficient of inequality equals the area between the Lorenz curve and the diagonal line divided by the entire area that lies underneath the diagonal line.<ref>http://people.hofstra.edu/geotrans/eng/ch4en/meth4en/ch4m1en.html</ref>

== Criticism ==

== Criticism ==

It is far from clear what, if any, real significance there is to the Gini coefficient.

The Gini coefficient measures only inequality in terms of income, and not opportunity, lifetime income, or utility. It is used widely because of its simplicity, but this simplicity gives rise to a narrow range of focus.

== References ==

== References ==