Apr 21 2012
A numerical measure of the level of income inequality in a nation. Measures the ratio of the area between the line of equality (the 45 degree line) and a nation’s Lorenz Curve to the total area below the line of equality. The closer the coefficient is to one, the more unequal a nation’s income distribution. The closer to zero, the more equal the nation’s income is distributed.
About the author: Jason Welker teaches International Baccalaureate and Advanced Placement Economics at Zurich International School in Switzerland. In addition to publishing various online resources for economics students and teachers, Jason developed the online version of the Economics course for the IB and is has authored two Economics textbooks: Pearson Baccalaureate’s Economics for the IB Diploma and REA’s AP Macroeconomics Crash Course. Jason is a native of the Pacific Northwest of the United States, and is a passionate adventurer, who considers himself a skier / mountain biker who teaches Economics in his free time. He and his wife keep a ski chalet in the mountains of Northern Idaho, which now that they live in the Swiss Alps gets far too little use. Read more posts by this author