The empirical procedure often used to analyze the spatial and the residential dimensions of differentiation is to compare the pattern of distribution at a point of time and assert on the basis of high inequality in the distribution pattern of households usually shown by data that the high income households have been locating in the fringe area or in the inner city. Economic literature abounds in studies on the spatial pattern of the distribution of households based on either social area analysis or factorial ecology.
Social area analysis attempts to provide a broader framework for the analysis of residential differentiation within cities by examining the underlying dimensions of urban society. Shevky, Williams and Bell originally outlined this approach in their studies of Los Angeles and San Francisco cities. The work of Berry and Spodek on the ecology of large Indian cities has given new dimensions to the proposed scheme of social area analysis. They found that in Indian cities, high-class and high status people live close to the core of the city and low status people live at the periphery.
The more recent approach of determining the spatial distribution of social groups within a city is known as factorial ecology. This method is used to compare the ecological differentiation of residential areas in urban and metropolitan communities. The factorial ecology employs a variety of mathematically rigorous methods of factor analysis to reduce a large number of socio-economic and environmental indicators into a few underlying dimensions.
But the factor analysis procedure starts with a solution, which is not mathematically unique. Therefore, there is no assurance that the result obtained would conform to the theoretically relevant or most important aspects of the reality. In
Cochin Real Estate developments can be analyzed using this technique, but the major changes taking place in the city needs to be reanalyzed periodically.