If we know that the area between the Lorenz curve and the diagonal is 2,500, and the area of the square (the triangles above and below the diagonal) is 10,000, then the Gini coefficient is

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Quizplus · Accepted Answer

The Gini coefficient is calculated as the area between the Lorenz curve and the line of equality (diagonal) divided by the total area under the line of equality. Here, it is 2,500 / 10,000 = 0.25. However, the Gini coefficient is typically expressed as twice this value, so 0.25 * 2 = 0.50.

If We Know That the Area Between the Lorenz Curve