Definition: Gini Coefficient

Gini Coefficient - "an index of inequality or concentration (where perfect equality is 0 and perfect inequality, i.e., one has everything, is 1) used to measure, say, the distribution of income or land holdings. Gini is the area between the perfect equality (45 degree) line and the Lorenz curve divided by the total area of the line to the right of the perfect equality right. The higher the Gini, the higher the income inequality; the lower the Gini, the lower the income inequality." - source: Economic Development 4th Edition by E. Wayne Nafziger