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The Gini Coefficient: Its Origins

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  • Simone Pellegrino

    (Department of Economics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino, Italy)

Abstract

This essay retraces the historical steps and analyses the theoretical motivation that influenced the definition of the Gini index G and its application today. In particular, it tries to link together the ‘purely statistical’ approach and the ‘contextual’ approach, related not only to the statistical methods discovered in the Gini’s period but also to the succession of these discoveries. Having discussed the ‘contextual’ approach of these events, the remainder of the essay focuses on the ‘purely statistical’ approach, by presenting the statistical methods discovered by Corrado Gini and Gaetano Pietra as they chronologically appear in the years 1912, 1914 and 1915. The concept of mean difference, proposed by Corrado Gini in 1912 for applications in statistics and economics, is discussed. Then the difference between the concentration ratio R Gini advanced in 1914 and the Gini index G, as it is usually used today, is highlighted in light of its geometrical interpretation with the Lorenz piecewise linear function proposed by Gaetano Pietra in 1915.

Suggested Citation

  • Simone Pellegrino, 2024. "The Gini Coefficient: Its Origins," Working papers 086, Department of Economics, Social Studies, Applied Mathematics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino.
    • Handle: RePEc:tur:wpapnw:086
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    File URL: https://www.bemservizi.unito.it/repec/tur/wpapnw/m86.pdf
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    Other versions of this item:

    • Simone Pellegrino, 2020. "The Gini Coefficient: Its Origins," Working papers 070, Department of Economics, Social Studies, Applied Mathematics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino.

    References listed on IDEAS

    as
    1. Lidia Ceriani & Paolo Verme, 2012. "The origins of the Gini index: extracts from Variabilità e Mutabilità (1912) by Corrado Gini," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 10(3), pages 421-443, September.
    2. Newbery, David, 1970. "A theorem on the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 264-266, September.
    3. Anthony F. Shorrocks & James E. Foster, 1987. "Transfer Sensitive Inequality Measures," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 54(3), pages 485-497.
    4. Dorfman, Robert, 1979. "A Formula for the Gini Coefficient," The Review of Economics and Statistics, MIT Press, vol. 61(1), pages 146-149, February.
    5. Donaldson, David & Weymark, John A., 1980. "A single-parameter generalization of the Gini indices of inequality," Journal of Economic Theory, Elsevier, vol. 22(1), pages 67-86, February.
    6. repec:bla:econom:v:50:y:1983:i:197:p:3-17 is not listed on IDEAS
    7. Simone Pellegrino & Achille Vernizzi, 2013. "On measuring violations of the progressive principle in income tax systems," Empirical Economics, Springer, vol. 45(1), pages 239-245, August.
    8. Michael P Schneider, 2004. "Measuring Inequality: The Origins of the Lorenz Curve and the Gini Coefficient," Working Papers 2004.01, School of Economics, La Trobe University.
    9. Michael P Schneider, 2004. "Measuring Inequality: The Origins of the Lorenz Curve and the Gini Coefficient," Working Papers 2004.01 EDIRC Provider-In, School of Economics, La Trobe University.
    10. Milanovic, Branko, 1997. "A simple way to calculate the Gini coefficient, and some implications," Economics Letters, Elsevier, vol. 56(1), pages 45-49, September.
    11. Lerman, Robert I. & Yitzhaki, Shlomo, 1984. "A note on the calculation and interpretation of the Gini index," Economics Letters, Elsevier, vol. 15(3-4), pages 363-368.
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    Cited by:

    1. Monti Maria Giovanna & Pellegrino Simone & Vernizzi Achille, 2024. "The Zenga Index Reveals More Than the Gini and the Bonferroni Indexes. An Analysis of Distributional Changes and Social Welfare Levels," Working papers 084, Department of Economics, Social Studies, Applied Mathematics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino.
    2. Rosita De Vincentis & Federico Karagulian & Carlo Liberto & Marialisa Nigro & Vincenza Rosati & Gaetano Valenti, 2022. "A Data-Driven Approach to Analyze Mobility Patterns and the Built Environment: Evidence from Brescia, Catania, and Salerno (Italy)," Sustainability, MDPI, vol. 14(21), pages 1-14, November.
    3. John Creedy, 2023. "Distributional Comparisons Using the Gini Inequality Measure," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 56(4), pages 538-550, December.

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    More about this item

    Keywords

    Gini Coefficient; Lorenz Curve;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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