Background
A decile represents a statistical term used to categorize data into ten conveniently equal segments. Each decile contains one-tenth of the population sample being studied. ‘Decile’ derives from the Latin word ‘decem,’ meaning ten.
Historical Context
The idea of dividing data into quantile segments, such as deciles, has been utilized extensively beginning in the early 20th century as statistical methods became more sophisticated. Here, data stratification techniques including percentiles, quartiles, and deciles became fundamental tools for numerous disciplines including economics, demography, and social sciences.
Definitions and Concepts
A decile is synonymous with the term 10th percentile or the 0.1th quantile when data is divided into ten equal parts. Each decile cuts off a specific distribution proportion accumulated up to 10%. It provides finer granularity than quartiles or quintiles by splitting data into precise 10% segments.
Major Analytical Frameworks
Classical Economics
Classical economics commonly uses deciles in studying income distribution to observe economic efficiency and equality. For example, analyzing the top and bottom income deciles provides insights on income inequality.
Neoclassical Economics
Neoclassical economics often employs deciles to evaluate consumer behavior and market trends. Deciles help to distinguish how homogeneous or heterogeneous groups act within economic environments.
Keynesian Economics
Keynesians might use deciles in macroeconomic analyses related to aggregate demand to understand consumer spending patterns and how they vary among different income groups.
Marxian Economics
Marxian approaches could implement decile analysis when examining class stratification and wealth disparity. Deciles help illustrate the inequities of capital.
Institutional Economics
Institutional economists find decile breakdowns valuable when studying systemic change and institutional variability within sets of economic data.
Behavioral Economics
Behavioral economics may use deciles to map out variations in behavioral patterns within populations, by slicing the aggregated data set into smaller, comparable groups.
Post-Keynesian Economics
In Post-Keynesian frameworks, decile analysis can facilitate mapping of financial stability and evaluation of policy impact differentiation across various population cohorts.
Austrian Economics
Austrian economists often focus on individual actions but may include decile analyses to understand heterogeneity within data samples, affecting market movements and preferences.
Development Economics
Development economics utilizes decile analysis to compare education levels, health distributions, and income within developing versus developed nations, focusing on policy impacts within stratified sections.
Monetarism
Monetarist studies could focus on deciles to observe the impact of monetary policy across differing income segments, specifically evaluating resource redistribution effects across monetary aggregates.
Comparative Analysis
Comparative studies may utilize decile analysis to juxtapose economic variables like income levels, health indicators, or educational attainment across different regions, countries, or demographic groups.
Case Studies
Case studies might involve use of deciles to scrutinize specific socioeconomic phenomena such as the analysis of tax burdens, or per capita income distributions within particular policy changes, among different deciles.
Suggested Books for Further Studies
- “Income Distribution” by Frances Stewart
- “Analyzing Deciles: Introduction to Quantile Metrics” by Juan Martinez
- “Statistics for Business and Economics” by Paul Newbold
Related Terms with Definitions
- Percentile: A measure indicating the value below which a given percentage of observations in a group of observations falls.
- Quartile: One of the three values that divide a dataset into four equal parts, each containing 25% of the data.
- Quintile: One of five groups into which a dataset is divided, each containing 20% of the data.
Sample templates serve as versatile tools to craft comprehensive dictionaries; proofread before variations in this sample dictionary entry depend on the economic term defined and its interpretive richness.
