Information theoretic network approach to socioeconomic correlations

TL;DR

This paper introduces an information theoretic network approach using Generalized Jensen Shannon Divergence to analyze socioeconomic data, addressing limitations of traditional spatial measures and revealing universal patterns in regional socioeconomic variation.

Contribution

It proposes a novel topological framework for socioeconomic analysis that compares distributional data across regions, improving upon existing spatial methods.

Findings

Quantified decay of distributional correlations across US census tracts.

Analyzed socioeconomic disparities from tract to county level.

Developed an algorithm for city segmentation into homogeneous regions.

Abstract

Due to its wide reaching implications for everything from identifying hotspots of income inequality to political redistricting, there is a rich body of literature across the sciences quantifying spatial patterns in socioeconomic data. In particular, the variability of indicators relevant to social and economic well-being between localized populations is of great interest, as it pertains to the spatial manifestations of inequality and segregation. However, heterogeneity in population density, sensitivity of statistical analyses to spatial aggregation, and the importance of pre-drawn political boundaries for policy intervention may decrease the efficacy and relevance of existing methods for analyzing spatial socioeconomic data. Additionally, these measures commonly lack either a framework for comparing results for qualitative and quantitative data on the same scale, or a mechanism for generalization to multi-region correlations. To mitigate these issues associated with traditional spatial measures, here we view local deviations in socioeconomic variables from a topological lens rather than a spatial one, and use a novel information theoretic network approach based on the Generalized Jensen Shannon Divergence to distinguish distributional quantities across adjacent regions. We apply our methodology in a series of experiments to study the network of neighboring census tracts in the continental US, quantifying the decay in two-point distributional correlations across the network, examining the county-level socioeconomic disparities induced from the aggregation of tracts, and constructing an algorithm for the division of a city into homogeneous clusters. These results provide a new framework for analyzing the variation of attributes across regional populations, and shed light on new, universal patterns in socioeconomic attributes.