Advanced Search
MyIDEAS: Login

Efficiency of Pena’s P2 Distance in Construction of Human Development Indices

Contents:

Author Info

  • Nayak, Purusottam
  • Mishra, SK

Abstract

The paper is an attempt to evaluate the efficiency of Pena’s DP-2 method over a host of methods used to make composite indices. To undertake this exercise, variables and data used and methodology adopted in Human Development Report 2011 are employed along with nine other methodologies employed by other scholars. Although there is no agreed principle of judging an index to be best among alternative indices, it may be suggested that the composite index which is most informative among all other indices may be considered as the most acceptable one. The present study reveals that Pena-DP2 index and Penmax index have close similarity. Computationally, Pena’s method of construction of index is much simpler, but the interpretation of Penmax index is more straightforward. On the other hand, Maxmin index is norm-based and has a justification on Wald’s principle of decision-making. The Maxmin index also is the most egalitarian index against the Principal Component based index, which is known to be most elitist. On ‘sum of absolute correlation’ and ‘sum of squared correlation’, too, the Maxmin index is superior to other indices. It appears, therefore, that the Maxmin composite index which is obtained by maximization of minimum of correlation between the composite index and the constituent variables is a better than others. Further, if we go by the argument of Neumann and Morgenstern none of the composite indices is a cardinal measure in the strict sense of measurement.

Download Info

If 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.
File URL: http://mpra.ub.uni-muenchen.de/39022/
File Function: original version
Download Restriction: no

Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 39022.

as in new window
Length:
Date of creation: 25 May 2012
Date of revision:
Handle: RePEc:pra:mprapa:39022

Contact details of provider:
Postal: Schackstr. 4, D-80539 Munich, Germany
Phone: +49-(0)89-2180-2219
Fax: +49-(0)89-2180-3900
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC

Related research

Keywords: Human development index; Pena DP2 method; efficiency of composite index;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Mishra, SK, 2012. "A note on construction of heuristically optimal Pena’s synthetic indicators by the particle swarm method of global optimization," MPRA Paper 37625, University Library of Munich, Germany.
  2. Satya R. Chakravarty, 2003. "A Generalized Human Development Index," Review of Development Economics, Wiley Blackwell, vol. 7(1), pages 99-114, February.
  3. Mishra, SK, 2012. "A comparative study of trends in globalization using different synthetic indicators," MPRA Paper 38028, University Library of Munich, Germany.
  4. Mishra, SK, 2008. "On construction of robust composite indices by linear aggregation," MPRA Paper 9232, University Library of Munich, Germany.
  5. Herrero Carmen & Martínez Rico Ricardo & Villar Notario Antonio, 2008. "A Multiplicative Human Development Index," Working Papers 201099, Fundacion BBVA / BBVA Foundation.
  6. Alexander Cotte Poveda, 2012. "Estimating Effectiveness of the Control of Violence and Socioeconomic Development in Colombia: An Application of Dynamic Data Envelopment Analysis and Data Panel Approach," Social Indicators Research, Springer, vol. 105(3), pages 343-366, February.
  7. Hippu Salk Kristle Nathan & Srijit Mishra & B. Sudhakara Reddy, 2008. "An Alternative approach to measure HDI," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2008-001, Indira Gandhi Institute of Development Research, Mumbai, India.
  8. Vicente Royuela & Jordi Suriñach & Mónica Reyes, 2003. "Measuring Quality of Life in Small Areas Over Different Periods of Time," Social Indicators Research, Springer, vol. 64(1), pages 51-74, October.
  9. Elizabeth Stanton, 2007. "The Human Development Index: A History," Working Papers wp127, Political Economy Research Institute, University of Massachusetts at Amherst.
  10. Mishra, SK, 2012. "A maximum entropy perspective of Pena’s synthetic indicators," MPRA Paper 37797, University Library of Munich, Germany.
  11. Mishra, SK, 2007. "A Comparative Study of Various Inclusive Indices and the Index Constructed by the Principal Components Analysis," MPRA Paper 3377, University Library of Munich, Germany.
  12. Hicks, Norman & Streeten, Paul, 1979. "Indicators of development: The search for a basic needs yardstick," World Development, Elsevier, vol. 7(6), pages 567-580, June.
  13. Mishra, SK, 2012. "A note on the indeterminacy and arbitrariness of pena’s method of construction of synthetic indicators," MPRA Paper 37534, University Library of Munich, Germany.
  14. José-María Montero & Coro Chasco & Beatriz Larraz, 2010. "Building an environmental quality index for a big city: a spatial interpolation approach combined with a distance indicator," Journal of Geographical Systems, Springer, vol. 12(4), pages 435-459, December.
  15. Dong, Fengxia & Jensen, Helen H., 2011. "Measuring Food Safety Control in U.S. Hog Farms Using a Composite Indicator," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103863, Agricultural and Applied Economics Association.
  16. Adam Okulicz-Kozaryn, 2012. "Income and Well-being Across European Provinces," Social Indicators Research, Springer, vol. 106(2), pages 371-392, April.
  17. Tsuneyoshi, Takao & Hashimoto, Akihiro & Haneda, Shoko, 2012. "Quantitative evaluation of nation stability," Journal of Policy Modeling, Elsevier, vol. 34(1), pages 132-154.
  18. Hashimoto, Akihiro & Sugita, Takeshi & Haneda, Shoko, 2009. "Evaluating shifts in Japan's quality-of-life," Socio-Economic Planning Sciences, Elsevier, vol. 43(4), pages 263-273, December.
  19. Shoutir Kishore Chatterjee, 2005. "Measurement of Human Development: an alternative approach," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 6(1), pages 31-44.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Mishra, SK, 2012. "Construction of Pena’s DP2-based ordinal synthetic indicator when partial indicators are rank scores," MPRA Paper 39088, University Library of Munich, Germany.
  2. Prada, Albino & Sanchez-Fernandez, Patricio, 2014. "Del concepto de crecimiento económico al de desarrollo y bienestar de las naciones: Una aplicación a la Unión Europea
    [From economic growth to development and welfare of nations: An application
    ," MPRA Paper 54764, University Library of Munich, Germany.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:39022. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.