Formation of an index of economic capacity in Barcelona

Abstract

This study presents an evaluation of the economic capacity for the year 1988 of each of the 1919 censual sections that Barcelona is divided into. In view of the confidential nature of all information concerning incomes and resources, we have employed an indirect method of estimation using all the territorial information available at the highest level of disaggregation, that is the censual sections. This evaluation gathers variable indicators of income distribution and wealth, and without being exacly one or the other, incorporates elements of both aspects. Taking these variables into account, through Generalised Principal Components Analysis we obtain the economic capacity index of the average household in the censual section. Then it just remains to scale this factor according to the variability of family income by districts in Barcelona, giving a value of 100 for the whole city.