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Theoretical and Applied Economics
No. 2 / 2026 (647), Summer

Income inequality: The Resource Distribution Index (RDI)

Kausar YASMEEN
University of Nizwa, Oman

Abstract. Objective: To construct a conceptual innovatory formulation of the Resource Distribution Index (RDI) integrating the distribution of income and the level of accessibility of key resources. This presents a multidimensional perspective of inequality at the micro-level the study attempts to address the issue of inequality paradox at the micro and macro perspective simultaneously. Study/Method: The study is of the archival type and is based on secondary data research and publications. The study constructs the RDI, and then attempts to assess empirically the relation of RDI scores to Gini Index and Palma Ratio.

Results: RDI, paradoxically, in relation to the income measure that suggests more equality, there existed a greater number of poorly accessible key resources. Next, the RDI with the measure of access to resources and income embedded ratio over-spilled limitlessly the other resources in the accessible ratio of the income metrics. Therefore, the RDI the basis of is a perfect platform in establishing the feasibility of the policy recommendations. The assumptions and results of the RDI are congruent with the prevailing, modern, and religious texts.

Study Limitations: The study is bound to a phenomenon that involves secondary data that lacks particular local data. The RDI's applicability may need to be modified to the specific circumstances of the studied population. The RDI can be enhanced by collecting primary data in the next study. Implication: The RDI provides direct social interventions centered on fair resource distribution to policymakers, urban developers, and social community organizers. The RDI, accompanied by additional indicators, provides a framework to communities for assessing and measuring social deprivation, which goes beyond income, inequality. The RDI can be used as a benchmark for other nations, and Australia can similarly, be positioned in pursuit of its goal for Inclusive and Sustainable Development.

Novelty/value: A key element of this study is the development of a novel composite index of inequality that measures income and resource accessibility, providing additional depth to the resource inequality index, and presenting a framework for local interventions designed to achieve change at both the micro and macro levels.

Keywords: income inequality, Resource Distribution Index, resource access, social policy.

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