The current Gini coefficient is inaccurate for smaller populations—the rectangular area of the wealthiest agent can spill over the equality line and result in a negative ratio. Using trapezoidal area instead ensures that the Lorenz curve area is more accurate and always stays under the equality line.
The current Gini coefficient is inaccurate for smaller populations—the rectangular area of the wealthiest agent can spill over the equality line and result in a negative ratio. Using trapezoidal area instead ensures that the Lorenz curve area is more accurate and always stays under the equality line.