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GINI Coefficient

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Consider the following land distribution data for a developing country:
Holding size % Holdings % Holdings Area CUMUL
Less than 1 50 5 5
1-2 20 10 15
2-10 15 15 30
10-100 10 20 50
GT 100 5 50 100
a. Find the Gini coefficient
b. If ten percent of the land of the farms in the top 5% (measured by size) were transferred equally to the poorest 50% of farms, what happens to inequality?

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"Consider the following land distribution data for a developing country:
a. Find the Gini coefficient
"

Holding Size % Holding Cumulative % Holding % Holding Area Cumulative % Holding Area 
0 0 0.00% 0 0
Less than ...

Solution Summary

GINI Coefficient is clearly identified.

$2.19
See Also This Related BrainMass Solution

Meaning of the Gini coefficient

Please help answer the following problems.

Suppose France has a Gini coefficient of 0.4, and Germany has a Gini coefficient of 0.3. Which of the following conclusions are we able to make with this information?

a) The ratio of the total income of the lowest quintile of the income distribution to the total income of the highest quintile of the income distribution is higher in France than in Germany.

b) The lowest quintile of France's income distribution earns a lower percentage of the aggregate French income than the lowest quintile of Germany's income distribution does of the aggregate German income.

c) The lowest quintile of France's income distribution is poorer in absolute terms than the lowest quintile of Germany's income distribution.

d) We cannot tell any of these things from the Gini coefficients of the two countries.

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