Some of the important techniques in the measurement of disparities.
A. Composite Index Method
- By taking a single indicator – e.g. Agriculture or industrial
C.D.I = Pi/PI x 100
- Where, CDI = coefficient of development factor ‘i’
- Pi = % of factor ‘i’
- PI = mean % value factor in the whole region.
2. By considering all the indices of development –
CID = Cdi1 + Cdi2 + Cdi3 + . . . . . . . + Cdin / N
- Where, CID = Composite Index of Development
- N = No. of variables.
- Cdi = coefficient of development factor ‘i’
B. Normalization/Standardization Method
- This is Prof. Kundus’s method
- We have select the indicator for measuring the development.
- If we add the values of this indicator directly.
- The technique of division by mean i.e. x suggested by ‘Kundu’ is used for this purpose.
- Indicators are divided by their corresponding mean.
- After arranging these composite index values in descending order.
- Higher the value higher the development region.
- You make can understand the developed, moderate and backward levels of the region.
C. Ranking Method
- This is Prof. Ashok Mitra’s Method.
- We select some of the indicators e.g. socio-cultural and economic prospects.
- We calculate the ranks of the values of each indicator.
- finally added the rank of each observation of each indicator, putting rank in descending order.
- If ranks are 1,2,3,4,…… n highest value and large.
- The lower the value higher is the development and vice versa.
D. ‘Z’ Score Method
- In this method score of each areal unit is divided by the average for the region as a whole, to calculate what is known as the ‘z’ score method.
- Summation of the ‘z’ score for all indicators of each areal unit indicates the level of development, the higher the value higher will be the development.
- ‘Z’ score is also calculated alternatively by subtracting the mean from actual values and dividing it by S.D.