The Gini coefficient is the ratio of the area between the line of perfect equality and the observed Lorenz curve to the area between the line of perfect equality and the line of perfect inequality. The higher the coefficient, the more unequal the distribution is. In the diagram on the right, this is given by the ratio A/(A+B), where A and B are the areas of regions as marked in the diagram.
The Gini coefficient is the. ratio of the area between the line of perfect equality and the observed Lorenz curve to. the area between the line of perfect equality and the line of perfect inequality. The higher the coefficient, the more unequal the distribution is. In the diagram on the right, this is given by the ratio A/(A+B), where !A a!nd B are the areas of regions as marked in the diagram.