Gini's coefficient is easily calculated with the use of Excel Application. This coefficient measures the degree of inequality in income of community. This value ranges between 0 to 1, where extreme zero value means an ideal equlity.

Gini's coefficient is defined as , where ‚™_{‚P}, ‚™_{2}, cc ‚™_{n} are distribution of individual income of n samples,

and f is an average value of them.

Therefore f is given as f = ( ‚™_{‚P} + ‚™_{2} + cc + ‚™_{n}) / n

The values ‚™_{‚P}, ‚™_{2}, c‚™_{n} are filled in painted cells as demonstrated in the figure above.

C3 cell is typed as w =abs(c$2-$b3) x , and all cells in the table are copied entirely.

(note) Excel's ABS-function gives __Absolute value__, i.e. | 15 - 40 | equals to 25.

B8 cell is typed asw =sum(c3:g7) x , indicating the value in the Gini's definition.

B9 is an average value of n samples i.e. w =average(b3:b7) x and B10 consists of w =count(b3:b7) x, meaning the count of values corresponding the number of sample (n).

Gini's coefficient, B11 cell is calculated as w =b8/(2*b10*b10*b9) x.

Description of B11 is also available as w =b8/(2*b10^2*b9) x. w ^2 x covers a value of number square, and w ^3 x covers that of cubic.

You can get a similar result if you copy the subsequent table and paste on your Excel Sheet. The item "sample" must be set in A1 cell.

sample | ||||||

15 | 25 | 40 | 80 | 180 | ||

15 | =ABS(C$2-$B3) | =ABS(D$2-$B3) | =ABS(E$2-$B3) | =ABS(F$2-$B3) | =ABS(G$2-$B3) | |

25 | =ABS(C$2-$B4) | =ABS(D$2-$B4) | =ABS(E$2-$B4) | =ABS(F$2-$B4) | =ABS(G$2-$B4) | |

40 | =ABS(C$2-$B5) | =ABS(D$2-$B5) | =ABS(E$2-$B5) | =ABS(F$2-$B5) | =ABS(G$2-$B5) | |

80 | =ABS(C$2-$B6) | =ABS(D$2-$B6) | =ABS(E$2-$B6) | =ABS(F$2-$B6) | =ABS(G$2-$B6) | |

180 | =ABS(C$2-$B7) | =ABS(D$2-$B7) | =ABS(E$2-$B7) | =ABS(F$2-$B7) | =ABS(G$2-$B7) | |

total amount | =SUM(C3:G7) | |||||

average (f) | =AVERAGE(B3:B7) | |||||

samples (n) | =COUNT(B3:B7) | |||||

Gini's coeff.i‚‡j | =B8/(2*B10*B10*B9) |