The Gini coefficient is a statistical measure used to represent income or wealth distribution within a population. It ranges from 0 to 1, where 0 indicates perfect equality (everyone has the same income) and 1 signifies perfect inequality (one person has all the income, while others have none). This coefficient helps economists and policymakers understand economic disparities and assess the effectiveness of social policies. A lower Gini coefficient suggests a more equitable distribution of resources, while a higher value indicates greater inequality, prompting discussions on potential reforms to address these disparities.