Sage Journals: Discover world-class research

Abstract

The construction of social indices to compare local areas from census and other data has an important influence on the allocation of public resources. There has been debate in past years on the choice of variables for such indices and on the means used to combine percentages measured for more than one variable. More recently the percentage and its z-score have given way to the signed χ² statistic as a more appropriate means of identifying concentrations of need. In this paper the relative merits of the signed χ² statistic, the percentage, and the raw count are discussed in relation to two separate objectives in resource allocation: identification of concentrations of need (geographic targeting) and calculation of local budgets (resource distribution). The signed χ² statistic is shown to overcome disadvantages of the percentage when identifying high concentrations of need but entails its own disadvantages. It is arbitrary in its construction, its ranking of areas is dependent on the choice of a reference area, and it is misleading for areas of low concentration of need. These conclusions apply both to comparison of large local areas such as local authority districts and to comparison of small areas within a locality. Alternatives are discussed.

Get full access to this article

View all access options for this article.

References

Audit Commission, 1994, “Now the good news: The first year of Council Tax”, Council Tax Bulletin number 2, Audit Commission, 1 Vincent Square, London SW1P 2PF

Bradford

Robson

Tye

, 1995, “Constructing an urban deprivation index” Environment and Planning A 27 519–533

Browne

, 1992, “Home care area budget allocation. Paper 1: Testing the alternatives”, City of Bradford Metropolitan Council, Social Services Policy and Information Unit, Olicana House, Bradford BD1 1HY

CBMC, 1993, “Areas of stress within Bradford District: A report from the 1991 census and other sources”, City of Bradford Metropolitan Council, Chief Executive's Office, City Hall, Bradford BD1 1HY

Chipping

, 1994, “Data for allocation of resources”, in Regional and Local Statistics Proceedings of the Statistics Users' Council Annual Conference, 16 November 1993, IMAC Research, Lancaster House, More Lane, Esher, KT10 8AP, pp 29–55

Cole

, 1993, “The 1991 Local Base and Small Area Statistics”, in The 1991 Census User's Guide Eds Dale

Marsh

(HMSO, London) pp 201–247

Dale

Marsh

(Eds), 1993 The 1991 Census User's Guide (HMSO, London)

Davies

Joshi

Clarke

, 1996, “Is it cash the deprived are short of?” Journal of the Royal Statistical Society forthcoming

Derbyshire

, 1993, “Changes in local government finance” Journal of the Royal Statistical Society A 156 333–335

10.

DoE, 1983, “Urban deprivation”, information note 2, Inner Cities Directorate, Department of the Environment, 2 Marsham Street, London SW1P 3EB

11.

DoE, 1994, “Bidding guidance: A guide to funding under the single regeneration budget”, Government Offices for the Regions Headquarters, Department of the Environment, 2 Marsham Street, London SW1P 3EB

12.

Flowerdew

Francis

Lucas

, 1994, “Indicators of spending need for district councils” Environment and Planning C: Government and Policy 12 1–13

13.

Holtermann

, 1975, “Areas of urban deprivation in Great Britain: An analysis of 1971 census data” Social Trends 6 33–47

14.

Jenkins

, 1994, “Using the 1991 census for the review of childcare”, paper presented to the Local Authorities Research and Intelligence Association (LARIA) conference, 28–30 March, Newcastle upon Tyne; copy available from the author, Policy Division, Northamptonshire County Council, Corporate Headquarters, PO Box 93, County Hall, Northampton NN1 1AN

15.

LGMB/LRC, 1992 SASPAC User Manual Part 2 Local Government Management Board/London Research Centre, London; copy available from LRC, 81 Black Prince Road, London SE1 7SZ

16.

Martin

Senior

M L

Williams

H C W L

, 1994, “On measures of deprivation and the spatial allocation of resources for primary health care” Environment and Planning A 26 1911–1929

17.

Metcalf

, 1994, “Comparing parish or district deprivations using the chi-squared score”, unpublished paper; copy available from P Metcalf, 67 Park Hall Road, Walsall WS5 3HL

18.

OPCS, 1980 People in Britain—A Census Atlas Office of Population Censuses and Surveys (HMSO, London)

19.

Rhind

, 1983a, “Mapping census data”, in A Census User's Handbook Ed. Rhind

(Methuen, London) pp 171–198

20.

Rhind

, 1983b, “Creating new variables and new areas”, in A Census User's Handbook Ed. Rhind

(Methuen, London) pp 151–170

21.

Senior

M L

, 1991, “Deprivation payments to GPs: Not what the doctor ordered” Environment and Planning C: Government and Policy 9 79–94

22.

Senior

M L

, 1994, “The English Standard Spending Assessment system: An assessment of the methodology” Environment and Planning C: Government and Policy 12 23–51

23.

Simpson

(Ed.), 1993, “Census indicators of local poverty and deprivation: Methodological issues”, proceedings of a day workshop organised by the Manchester Census Group and the Local Authority Research and Intelligence Association (LARIA); copy available from LARIA, 2 Turnstone Close, Winnersh, Wokingham, Berks RG11 5LQ

24.

Thunhurst

, 1985, “The analysis of small area statistics and planning for health” The Statistician 34 93–106

Resource Allocation by Measures of Relative Social Need in Geographical Areas: The Relevance of the Signed χ 2,the Percentage,and the Raw Count

Abstract

Get full access to this article

References