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Chaotic signals from HDI measurement

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  • Guido Luchters
  • Lukas Menkhoff

Abstract

The Human Development Index (HDI) is designed to provide a development measure competing with GDP, and it has been reformed several times to this end. The 1996 and 1997 reports, however, reveal a severe new flaw in the HDI: the transformation of GDP changes into the index of human development is completely misleading, as higher real per capita GDP often causes lower HDI values, and vice-versa. This transformation is generally highly sensitive to the initial GDP, resulting in chaotic transformation patterns. Relatively marginal modifications to the measurement of HDI could solve this problem.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 7 (2000)
Issue (Month): 4 ()
Pages: 267-270

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Handle: RePEc:taf:apeclt:v:7:y:2000:i:4:p:267-270

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Cited by:
  1. Morse, Stephen, 2003. "For better or for worse, till the human development index do us part?," Ecological Economics, Elsevier, vol. 45(2), pages 281-296, June.
  2. Hezri, Adnan A. & Dovers, Stephen R., 2006. "Sustainability indicators, policy and governance: Issues for ecological economics," Ecological Economics, Elsevier, vol. 60(1), pages 86-99, November.
  3. Sevinc Rende & Murat Donduran, 2013. "Neighborhoods in Development: Human Development Index and Self-organizing Maps," Social Indicators Research, Springer, vol. 110(2), pages 721-734, January.
  4. Dejian Lai, 2003. "Principal Component Analysis on Human Development Indicators of China," Social Indicators Research, Springer, vol. 61(3), pages 319-330, March.
  5. Laurens Cherchye & Erwin Ooghe & Tom Puyenbroeck, 2008. "Robust human development rankings," Journal of Economic Inequality, Springer, vol. 6(4), pages 287-321, December.
  6. Elizabeth Stanton, 2007. "The Human Development Index: A History," Working Papers wp127, Political Economy Research Institute, University of Massachusetts at Amherst.
  7. McGillivray, Mark & Noorbakhsh, Farhad, 2004. "Composite Indices of Human Well-being: Past, Present, and Future," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  8. Morse, Stephen, 2006. "Making development simple. The genetic deterministic hypothesis for economic development," Ecological Economics, Elsevier, vol. 56(1), pages 79-88, January.
  9. Sabina Alkire & James Foster, 2010. "Designing the Inequality-Adjusted Human Development Index (IHDI)," Human Development Research Papers (2009 to present) HDRP-2010-28, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).

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