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An Alternative Approach to Measure HDI

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Abstract

The popularly known Human Development Index (HDI) is obtained through linear averaging (LA) of indices in three dimensions- health, education and standard of living. This paper questions the appropriateness of LA method and proposes an alternative measure, which is the inverse of the Euclidian distance from the ideal, known as Displaced Ideal (DI) method. The paper shows the advantages of the DI method. The authors strongly propose that the DI method be considered over the LA method in the construction of HDI. [IGIDR WP no. 2008-001]

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  • Hippu Salk Kristle Nathan, 2009. "An Alternative Approach to Measure HDI," Working Papers id:2069, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:2069
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    References listed on IDEAS

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    1. S. Subramanian & Manabi Majumdar, 2002. "On measuring deprivation adjusted for group disparities," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 19(2), pages 265-280.
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    1. Hippu Salk Kristle Nathan & Srijit Mishra, 2010. "Progress in human development: Are we on the right path?," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 3(3), pages 199-221.
    2. Jeni Klugman & Francisco Rodríguez & Hyung-Jin Choi, 2011. "The HDI 2010: new controversies, old critiques," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(2), pages 249-288, June.
    3. Issaka Dialga, 2016. "L'Indice du Développement Humain ou l'indice monétaire de développement ? Evidences par l’Analyse en Composantes Principales," Working Papers hal-01308724, HAL.
    4. Dr. Riadh Ben Jelili, "undated". "Conventional and Corrected Measures of Gender-related Development Index (GDI): What Happens to the Arab Countries Ranking?," API-Working Paper Series 1007, Arab Planning Institute - Kuwait, Information Center.
    5. Dilip Ambarkhane & Ardhendu Shekhar Singh & Bhama Venkataramani, 2016. "Developing a Comprehensive Financial Inclusion Index," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 41(3), pages 216-235, August.
    6. Srijit Mishra & Hippu Salk Kristle Nathan, 2008. "On A Class of Human Development Index Measures," Development Economics Working Papers 22340, East Asian Bureau of Economic Research.
    7. Tetteh, Godsway Korku & Goedhuys, Micheline & Konte, Maty & Mohnen, Pierre, 2020. "Towards a new index of mobile money inclusion and the role of the regulatory environment," MERIT Working Papers 2020-035, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    8. Shantanu Ghosh & Tarak Nath Sahu, 2021. "Financial inclusion and economic status of the states of India: An empirical evidence," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 50(2), July.
    9. Nayak, Purusottam & Mishra, SK, 2012. "Efficiency of Pena’s P2 Distance in Construction of Human Development Indices," MPRA Paper 39022, University Library of Munich, Germany.
    10. Tulika Tripathi & Nripendra K. Mishra, 2017. "Fuzziness in conceptualisation of women’s empowerment, access to resources and autonomy: evidence from Indian states," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 19(1), pages 60-82, April.
    11. Srijit Mishra & Hippu Slak Kristle Nathan, 2013. "Measuring human development index: The old, the new and the elegant," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2013-020, Indira Gandhi Institute of Development Research, Mumbai, India.
    12. Upasak Das & Udaya S. Mishra, 2020. "Towards Conceptualization of a Household Educational Indicator: Incorporating Externalities," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 150(1), pages 289-309, July.
    13. Issaka Dialga, 2017. "A Sustainability Index of Mining Countries," Working Papers halshs-01500643, HAL.
    14. Nayak, Purusottam, 2013. "Methodological Developments in Human Development Literature," MPRA Paper 50608, University Library of Munich, Germany.

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    More about this item

    Keywords

    human development index (HDI); linear averaging(LA) method; displaced ideal (DI) method; Euclidian distance; ideal point; uniform development .;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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