Abstract

The aim of this paper is to help readers understand the significance of the Gini coefficient. We have two major formulae for the Gini coefficient. One of the formulae bases on the idea of aggregation of the microscopic differences between individuals' incomes or wealth. The idea that underlies the other formula is macroscopic presentation of distribution or concentration of income or wealth. We will show an unabridged proof of the equivalence between these formulae to examine how the two conceptions of the measurement of inequality are linked to each other.

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