Optimizing the new formulation of the United Nations' human development index: An empirical view from data envelopment analysis
AbstractIn this paper, we propose a new way to simulate an optimal Human Development Index [HDI]. Indeed, the formulation of the original HDI established by the United Nations Development Programme [UNDP] relies on a major methodological shortcoming, namely the contestable assumption that all component indices have the same weights. So, we implement a new approach to determine the optimal weights of each sub-indicator in the light of Data Envelopment Analysis [DEA]. Accordingly, we follow the multiplicative optimization approach introduced by Zhou et al. (2010), to assess robustly the relative performance of a set of 169 economies around the world in terms of human development. Finally, the new world ranking is close to and highly correlated with the standard HDI one, giving then some support to the equal weighting method adopted by the UNDP.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 31 (2011)
Issue (Month): 1 ()
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Human development index; data envelopment analysis; multiplicative optimization approach; optimal weights;
Find related papers by JEL classification:
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
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Public Economics Working Paper Series
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