User:Chargre2

I am an academic research in Economics and Finance. I created and ran the Economic Modelling Bureau of Australia from 1987 to 1998, then worked in the private sector for 13 years and am now back doing academic research in to Corporate Governance and Executive Remuneration.

The formula given for the Gini coefficent is by no means the simplest and may be incorrect.

If the Lorenz curve is set to run from 0 to 1, with n points equally placed along the horizontal axis (at 1/n, 2/n ... (n-1)/n), with vertical coordinates y1 to y(n-1), then the Gini coefficient is simply

G = 1 -  1/n  -  (2/n)*sum of yi from i=1 to n-1.

{note yn = 1, and y0 = 0}