The Gini coefficient is usually defined mathematically based on the Lorenz curve. It can be thought of as the ratio of the area that lies between the line of equality and the Lorenz curve (marked 'A' in the diagram) over the total area under the line of equality (marked 'A' and 'B' in the diagram); i.e., G=A/(A+B).
The Gini coefficient can range from 0 to 1; it is sometimes multiplied by 100 to range between 0 and 100. A low Gini coefficient indicates a more equal distribution, with 0 corresponding to complete equality, while higher Gini coefficients indicate more unequal distribution, with 1 corresponding to complete inequality. To be validly computed, no negative goods can be distributed. Thus, if the Gini coefficient is being used to describe household income inequality, then no household can have a negative income. When used as a measure of income inequality, the most unequal society will be one in which a single person receives 100% of the total income and the remaining people receive none (G=1); and the most equal society will be one in which every person receives the same percentage of the total income (G=0).
Some find it more intuitive (and it is mathematically equivalent) to think of the Gini coefficient as half of the Relative mean difference. The mean difference is the average absolute difference between two items selected randomly from a population, and the relative mean difference is the mean difference divided by the average, to normalize for scale. Worldwide, Gini coefficients for income range from approximately 0.247 (24.7) in Denmark to 0.707 (70.7) in Namibia although not every country has been assessed.
As a mathematical measure of inequality, the Gini coefficient does not necessarily entail any value judgement, i.e. the "rightness" or "wrongness" of a particular level of equality.
http://en.wikipedia.org/wiki/Gini_coefficient
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