The Gini Index (or Gini Coefficient) is a synthetic indicator of inequality for a given variable and population that measures the statistical dispersion intended to represent the income or wealth distribution among individuals or households within an economy deviates from a perfectly equal distribution. The Gini coefficient ranges from 0 to 1, with 0 representing perfect equality and 1 representing perfect inequality. Values over 1 are theoretically possible due to negative income or wealth.
Reference Definition by OECD: The Gini Index (or Gini Coefficient) measures the extent to which the distribution of income (or, in some cases, consumption expenditure) among individuals or households within an economy deviates from a perfectly equal distribution. The Gini index measures the area between the Lorenz curve and the hypothetical line of absolute equality, expressed as a percentage of the maximum area under the line. A Gini index of zero represents perfect equality and 100, perfect inequality.
Related Definitions in the Project: The Commercial Definitions
