Measurement of inequality by Location Quotient स्थान भाव से असमानता का मापन

In this video, you can learn about the Location Quotient and how to calculate the Location Quotient and its mapping. Students of UG and PG courses and research scholars can apply this method for showing the relative concentration of any characteristic of any region.
Location Quotient (LQ) is the ratio that provides a convenient way to examine the specialization of economic activity in a region. When the proportion of any characteristic in any area is studied in relation to its proportion in the region, the ration used is known as Location Quotient. Location quotient (LQ) is basically a way of quantifying how concentrated a particular industry, cluster, occupation, or demographic group is in a region as compared to the nation. It can reveal what makes a particular region “unique” in comparison to the national average. In more exact terms, location quotient is a ratio that compares a region to a larger reference region according to some characteristic or asset. Suppose X is the amount of some asset in a region (e.g., manufacturing jobs), and Y is the total amount of assets of comparable types in the region (e.g., all jobs). X/Y is then the regional “concentration” of that asset in the region. If X’ and Y’ are similar data points for some larger reference region (like a state or nation), then the LQ or relative concentration of that asset in the region compared to the nation is (X/Y) / (X’/Y’).
Location Quotients are a relatively quick and easy way to gather information about the relative size and importance of local industries. Understanding the regional industrial mix is important to forecasting the drivers of future demand for specific types of real estate. In addition, it is necessary when forecasting regional economic growth patterns.
There are, however, a few points to consider when analyzing the results of the analysis. First, the Location Quotient captures industrial concentration at a single point in time. This snapshot does not account for trends over time. It may be helpful to compute the location quotient for several years in order to understand the dynamic relationship between regional concentration and national employment.
Second, the location quotient assumes that the level of productivity for workers is constant in all locations. The analysis must consider whether the higher regional employment concentration is indicative of competitive advantage or lower productivity levels compared to the national average.
Third, be careful not to overlook niche markets that may be a source of regional economic strength and opportunity. The data available from the Bureau of Labor Statistics groups employment into large categories such as manufacturing, education and health services, and natural resources and mining. As a result, the location quotient calculation may underestimate the important contribution of a smaller, niche market within that large employment category.
Location Quotients are useful tools for understanding regional economic strengths and opportunities. They are also useful in forecasting regional economic trends based on trends for specific market sectors. Location Quotients, however, should just be one of the models of economic growth considered as part of market analysis.

[@shantanupaul4258]

Sir if there are two blocks, if we compare this two blocks according to health care facilities. Then location quotient is appropriate statistical methods???

[@shantanupaul4258]

Sir if there are two blocks, if we compare this two blocks according to health care facilities. Then location quotient is appropriate statistical methods???