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A Computational Approach to Economic Inequality, Happiness and Human Development

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  • Irina GEORGESCU
  • Jani KINNUNEN
  • Armenia ANDRONICEANU
  • Ane-Mari ANDRONICEANU

Abstract

In this paper, we study the connections of categorical levels of Human Development Index (HDI), GDP per capita, World Happiness Index, the Gini indexes of Income and Wealth inequalities together with poverty rate for 98 world countries. By clustering analysis, we identify four groups of countries with similar features. K-means clustering algorithm is applied to obtain four clusters of sizes 21-26 countries by explaining 68.3% of the total variation in data. The analysis reveals significant differences between the clusters, while also factors with largest differences within the clusters. Secondly, multinomial logistic regression (MLR) is applied in predicting the HDI categories of the full sample of 98 world countries for year 2018. The MLR model can capture also nonlinear relationship. The logistic regression model achieved 91.8% overall accuracy. The results of our research together from earlier literature is followed by suggestions for the future research.

Suggested Citation

  • Irina GEORGESCU & Jani KINNUNEN & Armenia ANDRONICEANU & Ane-Mari ANDRONICEANU, 2020. "A Computational Approach to Economic Inequality, Happiness and Human Development," Informatica Economica, Academy of Economic Studies - Bucharest, Romania, vol. 24(4), pages 16-28.
    • Handle: RePEc:aes:infoec:v:24:y:2020:i:4:p:16-28
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    References listed on IDEAS

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    4. Ravi Prakash & Pulkit Garg, 2019. "Comparative assessment of HDI with Composite Development Index (CDI)," Insights into Regional Development, VsI Entrepreneurship and Sustainability Center, vol. 1(1), pages 58-76, March.
    5. Saša Stjepanović & Daniel Tomić & Marinko Škare, 2017. "A new approach to measuring green GDP: a cross-country analysis," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 4(4), pages 574-590, June.
    6. Muhammad Haseeb & Sebastian Kot & Hafezali Iqbal Hussain & Kittisak Jermsittiparsert, 2019. "Impact of Economic Growth, Environmental Pollution, and Energy Consumption on Health Expenditure and R&D Expenditure of ASEAN Countries," Energies, MDPI, vol. 12(19), pages 1, September.
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    Cited by:

    1. Eleonora MARIŠOVÁ & Ivana LICHNEROVÁ & Ján MACHYNIAK, 2021. "Efficiency Of The Functioning Of Public Administration: Regional Empirical Study," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2021(36), pages 165-180, June.
    2. Ane-Mari ANDRONICEANU & Jani KINNUNEN & Irina GEORGESCU, 2021. "Entrepreneurial Motivations To Start New Businesses: A Panel Data Analysis," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 15(1), pages 479-491, November.
    3. Ane-Mari ANDRONICEANU & Irina GEORGESCU & Jani KINNUNEN, 2022. "A New Entrepreneurial Motivations Profile For Starting New Business By Using A Panel Data Analysis," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 14(1), pages 5-16, March.

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