Human Development Index: A Non-Compensatory Assessment
AbstractThe Human Development Index is a summary measure of Human Development on three basic dimensions: longevity, knowledge and standard of living. An index is computed for each of these three dimensions and a simple average computed. In this paper we adopt a Non-Compensatory perspective that considers that deprivation in any one of these basic dimensions cannot be compensated by achievements in any other. Consistent with this view, we propose to use the minimum of the component indexes instead of the arithmetic average. We present the results of this re-assessment of the HDI for the last five years’ data. Although correlated with the HDI, this NCHDI gives a different ranking of the countries and, above all, provides new insights into imbalances within the HDI. The new index can also be used at the national and local levels.
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Bibliographic InfoArticle provided by UN - RCE - CID in its journal REVISTA CUADERNOS DE ECONOMÍA.
Volume (Year): (2009)
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