<p>The GINI has fairly standardized calculation so you can just follow the standard formulas. The GINI is the ratio of the grey area on the plot below (taken from <a href="https://en.wikipedia.org/wiki/Gini_coefficient" rel="nofollow noreferrer">wikipedia</a> - which also mentions the formulas below) to the total area. Hence if you already have data where these areas are calculated you can simply compute GINI as:</p>
<p><span class="math-container">$$GINI= \frac{A}{A+B}$$</span></p>
<p>If you have raw data then you can use formula:</p>
<p><span class="math-container">$$GINI= \frac{\sum^n_{i=1}\sum^n_{j=1} |x_i-x_j| }{2n^2 \bar{x}}$$</span></p>
<p>where <span class="math-container">$x_i$</span> is the income of person <span class="math-container">$i$</span> (or if you are calculating wealth inequality wealth of person <span class="math-container">$i$</span>). The formula above can be also rearranged in a different ways, so some textbooks/sources can express it in different way but the results will match.</p>
<p>Next the formula could be also expressed in terms of income distribution:</p>
<p><span class="math-container">$$GINI= \frac{1}{2\mu} \int \int p(x_i) p(x_j) | x_i - x_j | dx_i dx_j $$</span></p>
<p>where <span class="math-container">$\mu$</span> is the mean of distribution of <span class="math-container">$x_i$</span>.</p>
<p>You can find more on these in Sen, Amartya (1977), On Economic Inequality (2nd ed.). If you want something solely focused on GINI then Yitzhaki and Schechtman. The Gini methodology: A primer on a statistical methodology. Vol. 272. has an exhausting literature review on GINI.</p>
<p><a href="https://i.sstatic.net/0KpRc.png" rel="nofollow noreferrer"><img src="https://i.sstatic.net/0KpRc.png" alt="enter image description here" /></a></p>

CC BY-SA 4.0
2020-11-06T11:05:01.490Z
2020-11-06T11:20:47.973Z
2020-11-06T11:20:47.973Z
1muflon1
<p>how are you doing? I read the Global Wealth Reports from Credit Suisse and I wondered how the authors calculated the Gini coefficient. For example, on <a href="https://www.credit-suisse.com/media/assets/corporate/docs/about-us/research/publications/credit-suisse-global-wealth-databook.pdf" rel="nofollow noreferrer">page 84</a> of this databook from 2010, how did they calculate it? Can somebody show me how they did it? I would like to recalculate it in excel. Thank you very much.</p>
<p><em>Example from the Databook 2010</em>
<a href="https://i.sstatic.net/YoFI8.jpg" rel="nofollow noreferrer"><img src="https://i.sstatic.net/YoFI8.jpg" alt="enter image description here" /></a></p>

CC BY-SA 4.0
2020-11-07T01:44:01.513Z
For the USA they probably used something like the [Survey of Consumer Finances](https://www.federalreserve.gov/econres/scfindex.htm) and similarly in other countries
Henry
<wealth><gini>
How did the authors of the (Credit Suisse) Global Wealth Databook calculate the Gini coefficient?
Ag12
# How did the authors of the (Credit Suisse) Global Wealth Databook calculate the Gini coefficient?

(Asked by: username_0 on 2020-11-06)

how are you doing? I read the Global Wealth Reports from Credit Suisse and I wondered how the authors calculated the Gini coefficient. For example, on [page 84](https://www.credit-suisse.com/media/assets/corporate/docs/about-us/research/publications/credit-suisse-global-wealth-databook.pdf) of this databook from 2010, how did they calculate it? Can somebody show me how they did it? I would like to recalculate it in excel. Thank you very much.

*Example from the Databook 2010*
[![enter image description here](https://i.sstatic.net/YoFI8.jpg)](https://i.sstatic.net/YoFI8.jpg)

**Tags:** wealth, gini

> **Comments:**
> **username_1**: For the USA they probably used something like the [Survey of Consumer Finances](https://www.federalreserve.gov/econres/scfindex.htm) and similarly in other countries  

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## 1 answers

### Answer by username_2 on 2020-11-06. Score: 1

The GINI has fairly standardized calculation so you can just follow the standard formulas. The GINI is the ratio of the grey area on the plot below (taken from [wikipedia](https://en.wikipedia.org/wiki/Gini_coefficient) - which also mentions the formulas below) to the total area. Hence if you already have data where these areas are calculated you can simply compute GINI as:

$$GINI= \frac{A}{A+B}$$

If you have raw data then you can use formula:

$$GINI= \frac{\sum^n\_{i=1}\sum^n\_{j=1} |x\_i-x\_j| }{2n^2 \bar{x}}$$

where $x\_i$ is the income of person $i$ (or if you are calculating wealth inequality wealth of person $i$). The formula above can be also rearranged in a different ways, so some textbooks/sources can express it in different way but the results will match.

Next the formula could be also expressed in terms of income distribution:

$$GINI= \frac{1}{2\mu} \int \int p(x\_i) p(x\_j) | x\_i - x\_j | dx\_i dx\_j $$

where $\mu$ is the mean of distribution of $x\_i$.

You can find more on these in Sen, Amartya (1977), On Economic Inequality (2nd ed.). If you want something solely focused on GINI then Yitzhaki and Schechtman. The Gini methodology: A primer on a statistical methodology. Vol. 272. has an exhausting literature review on GINI.

[![enter image description here](https://i.sstatic.net/0KpRc.png)](https://i.sstatic.net/0KpRc.png)


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