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Efficiency in human development: A Data Envelopment Analysis

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  • Valérie Vierstraete

    () (GREDI, Department of Economics, Université de Sherbrooke)

Abstract

The human development index (HDI) is a measure of development published annually by the UNDP. This index allows countries’ development to be assessed on the basis of three indicators that measure the health, education, and standard of living of the population. The UNDP also computes a human development that excludes this last indicator, the HDI*. The global average of the HDI is approximately 0.75, but like the HDI*, it presents some striking inter-country disparities. In this study, we wish to demonstrate that efficiency in the utilization of public resources can have an incidence on HDI* scores. Thus, owing to a certain “waste” in their use of resources, countries with similar levels of government spending may end up with differing levels of human development. We measure this efficiency using the Data Envelopment Analysis (DEA) method. Relative efficiency in resource use is thus computed by comparing the countries in the study amongst themselves.

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File URL: http://pages.usherbrooke.ca/gredi/wpapers/GREDI-1025.pdf
File Function: First version, 2010
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Bibliographic Info

Paper provided by Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke in its series Cahiers de recherche with number 10-25.

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Length: 27 pages
Date of creation: 12 Oct 2010
Date of revision:
Handle: RePEc:shr:wpaper:10-25

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Keywords: Data Envelopment Analysis; DEA; efficiency; development; human development index; HDI;

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