The area under a Lorenz curve is 0.30.What is its Gini coefficient?

Question

Quizplus · Accepted Answer

The Gini coefficient is calculated as $2 \times \text{area under the Lorenz curve}$. Therefore, if the area under the Lorenz curve is 0.30, the Gini coefficient is $2 \times 0.30 = 0.60$. However, since the Gini coefficient is often represented as the area between the line of equality and the Lorenz curve, which is $0.5 - 0.30 = 0.20$, and then doubled to normalize it to a 0-1 scale, the correct calculation should be $0.20 \times 2 = 0.40$.

The Area Under a Lorenz Curve Is 0