Diminishing returns to GDP and the Human Development Index
AbstractThis paper investigates the assumption of the human development index (HDI) that per capita GDP has diminishing returns to development. Alternative returns to scale assumptions for per capita GDP are evaluated using correlation and principal components analyses conducted on four separate samples of countries. Specifically, the correlation between various transformations of GDP and the other elements of the HDI are examined, and the principal components method of factor analysis is used to construct HDI-like indexes with the alternative transformations of GDP. Results generally support the diminishing returns assumption employed by the HDI, as a concave transformation of GDP is most highly correlated with the other variables, and the corresponding principal components HDI construction explains the largest amount of the variance of the original variables.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics Letters.
Volume (Year): 9 (2002)
Issue (Month): 13 ()
Contact details of provider:
Web page: http://www.tandfonline.com/RAEL20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Nayak, Purusottam, 2013. "Methodological Developments in Human Development Literature," MPRA Paper 50608, University Library of Munich, Germany.
- Elizabeth Stanton, 2007. "The Human Development Index: A History," Working Papers wp127, Political Economy Research Institute, University of Massachusetts at Amherst.
- 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).
- Mehmet Pinar & Thanasis Stengos & Nikolas Topaloglou, 2012.
"Measuring human development: a stochastic dominance approach,"
1209, University of Guelph, Department of Economics and Finance.
- Mehmet Pinar & Thanasis Stengos & Nikolas Topaloglou, 2013. "Measuring human development: a stochastic dominance approach," Journal of Economic Growth, Springer, vol. 18(1), pages 69-108, March.
- Mehmet Pinar & Thanasis Stengos & Nikolas Topaloglou, 2012. "Measuring Human Development: A Stochastic Dominance Approach," Working Paper Series 42_12, The Rimini Centre for Economic Analysis.
- Arcelus, F.J. & Sharma, B. & Srinivasan, G., 2005. "The Human Development Index Adjusted for Efficient Resource Utilization," Working Paper Series RP2005/08, World Institute for Development Economic Research (UNU-WIDER).
- Miles Cahill, 2005. "Is the Human Development Index Redundant?," Eastern Economic Journal, Eastern Economic Association, vol. 31(1), pages 1-5, Winter.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.