The Dynamic Deprivation Index: measuring relative socio-economic deprivation in NZ on a monthly basis

Abstract

The standard measures of relative socio-economic deprivation within New Zealand are the NZDEP studies and the NZ IMD. Although both sets of studies are extremely rigorous, high quality research outputs they are only able to provide a snapshot of the national distribution of relative socio-economic deprivation at fixed points in time. The inability to express deprivation levels as an extended and current time series means that not only are policy analysts and researchers working with outdated information, but also that it is often unfeasible to associate changes in deprivation levels to specific events or policy implementations. The Dynamic Deprivation Index (DDI) assigns a deprivation score and deprivation index to each area unit in New Zealand on a monthly basis. In this paper we look to describe the methodology behind the construction of the DDI and to validate the results therein. We argue that if public bodies were to make the data they hold more easily accessible, then there is no reason why New Zealand should not be able to benefit from a measure of socio-economic deprivation that combines the sophistication of the NZDEP studies or IMD with the contemporaneousness of the DDI.