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Regional Development in Advanced Countries: A Within-country Application of the Human Development Index for Austria

Author

Listed:
  • Lukas Schrott

    (University of Applied Sciences Kufstein)

  • Martin Gaechter

    (University of Innsbruck)

  • Engelbert Theurl

    (University of Innsbruck)

Abstract

Since its implementation in 1990, the human development index (HDI), the flagship indicator of multidimensional development, has attracted a great deal of attention and critics in academic, political and media circles. It initiated a new stage in the discussion of appropriate indicators to measure socioeconomic development. Until now, the vast majority of empirical work using the HDI concept has taken a cross-country perspective. The main aim of this paper is the application of the HDI at the sub-country level in small, highly developed and socioeconomically homogenous countries. For this undertaking we use a slightly modified version of the HDI, called the regional development index (RDI). For the components of the RDI – life expectancy, education and standard of living – we use recent cross section information for Austria at the level of districts. There exists considerable heterogeneity across districts in the RDI and its components. Our Theil-decomposition reveals that the overwhelming part of the observed heterogeneity is based on differences within provinces (96 percent), although the differences in life expectancy between the provinces explain a substantial part of the overall heterogeneity in this indicator (54 percent).

Suggested Citation

  • Lukas Schrott & Martin Gaechter & Engelbert Theurl, 2015. "Regional Development in Advanced Countries: A Within-country Application of the Human Development Index for Austria," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 1, pages 1-23, March.
    • Handle: RePEc:cmn:journl:y:2015:i:1:p:1-23
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    3. Ya-Ju Chang & Annekatrin Lehmann & Lisa Winter & Matthias Finkbeiner, 2018. "Application Options of the Sustainable Child Development Index (SCDI)—Assessing the Status of Sustainable Development and Establishing Social Impact Pathways," IJERPH, MDPI, vol. 15(7), pages 1-21, July.

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    More about this item

    Keywords

    Human Development Index; Regional Development; Decomposition; Austria;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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