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The Use of Indicators for Targeting Public Expenditure: The Index of Local Deprivation

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  • C Connolly

    (Economic Development and Planning Department, Durham County Council, County Hall, Durham DH1 5UF, England)

  • M Chisholm

    (Department of Geography, University of Cambridge, Cambridge CB2 3EN, England)

Abstract

The UK government places considerable emphasis on the targeting of resources to areas most in need. For the Single Regeneration Budget and other purposes, use is made of the Index of Local Deprivation (ILD), formerly the Index of Local Conditions (ILC), to identify eligible areas. In this paper we show that this index suffers from such serious structural defects that it is unsuitable for the purpose to which it is put. These defects include the scale dependency of the index, the inappropriate treatment of positive and negative numbers, the unequal weights assigned to the indicators used and the difficulties introduced by using a nonlinear structure for the index. Recent decisions to modify the ILD do not address these defects and one change that has been mooted would exaggerate the scale bias. Suggestions are made for what should be done in replacing and supplementing the ILD to provide a better basis for assessing relative need.

Suggested Citation

  • C Connolly & M Chisholm, 1999. "The Use of Indicators for Targeting Public Expenditure: The Index of Local Deprivation," Environment and Planning C, , vol. 17(4), pages 463-482, August.
    • Handle: RePEc:sae:envirc:v:17:y:1999:i:4:p:463-482
    DOI: 10.1068/c170463
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    References listed on IDEAS

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    1. M G Bradford & B T Robson & R Tye, 1995. "Constructing an Urban Deprivation Index: A Way of Meeting the Need for Flexibility," Environment and Planning A, , vol. 27(4), pages 519-533, April.
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    Cited by:

    1. H. W. Armstrong & B. Kehrer & P. Wells, 2001. "Initial Impacts of Community Economic Development Initiatives in the Yorkshire and Humber Structural Funds Programme," Regional Studies, Taylor & Francis Journals, vol. 35(8), pages 673-688.
    2. Michael Pacione, 2004. "The Geography Of Disadvantage In Rural Scotland," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 95(4), pages 375-391.

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