A Simple Working Formula of Gini Coefficient with Some Common Software Command Codes

Abstract

Although there has been a revolution in the computational methodology of Gini coefficient towards simpler formulations and easy computation procedure with the application of software, this paper presents a far simpler working formula of the same and consequently some software command syntaxes. The key component of the formula is now just a product of income-rank-based weight and income. The method will enable researchers, who work with a large number of observations, to compute the index and add it as a variable in the same working data file with ease.