Some information about the Gini Coefficient (from Wikipedia):
The Gini Coefficient is the most commonly-used measurement for income equality in a region. It ranges from 0 to 1, or from 0% to 100%, with 0 indicating that everybody has the same amount of income and 1 indicating that one person earns all of the money in the region. While it can go above 1 when the lower end's income is negative (due to, for instance, massive piles of debt), that rarely happens.
The math behind the Gini Coefficient:
The Formula
Disclaimer: As NationStates only provides so much information, your actual Gini coefficient would be slightly higher than the one this formula provides you. However, this formula is as accurate as possible with the limited information provided.
First, go to your nation's Economy page. Toward the top, you should see something like this:
In red is your nation's average income, which will be called I from now on.
In green is your nation's poorest 10%'s average income, which will be called L from now on.
In blue is your nation's richest 10%'s average income, which will be called H from now on.
And finally, your Gini coefficient (as a percentage) is calculated as such:
Or, in text:
9 * (H - L) / I
Note: Since there has been some confusion: This formula returns your Gini as a percentage, as noted above. Do not multiply the result by 100.
For example, as is seen in the above Economy image, Darcania's average income is 42,060, its poorest average income is 30,760, and its richest average income is 55,500. Therefore:
H = 55,500;
L = 30,760; and
I = 42,060.
Thus, Darcania's Gini coefficient is:
9 * (55,500 - 30,760) / 42,060
which is equal to 5.29%.
How I derived this formula (Warning! Wall of text!):
Feel free to ask any questions.
Enjoy knowing (and showing off) you nation's Gini coefficient!
Note: As a favor to me, when posting a Gini coefficient calculated using this method, please link to this post, as a way of crediting me and showing anyone who is curious how to calculate theirs. I spent quite a few hours working on this, and would enjoy any credit.
For example, if posting it on a Factbook based on Ponderosa's template, you could put in the following entry in your sidebar:
- Code: Select all
[b][url=http://forum.nationstates.net/viewtopic.php?f=23&t=329515]Gini[/url]:[/b] 5.29
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(Top 10% is about $550,000 & Bottom 10% is about $34,000, average is $160,000)
