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The microeconomic elements of the socioeconomic development indicators

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  • Juan Hersztajn Moldau

Abstract

In this paper, I suggest the use of non-conventional models of choice and production,to underlie the construction and employment of index numbers. I recommend theuse of the model of production proposed by Georgescu-Roegen and a model of choice, thatacknowledges the existence of irreducible criteria. Also stressed, are the distinction betweenflow and stock and between funds’ services and flows of goods, that are produced or consumedin transformation activities. Flows can frequently be associated to production activities.Therefore, one can apply principles derived from Production Theory. The correspondingimplications, with respect to the choice of index numbers, are discussed. Another conclusionof this paper, is the necessity of considering index numbers, associated to the satisfaction ofbasic needs, in the design of social programs. Poverty indices are also discussed to illustratesome of the points raised in the paper. JEL Classification: B41; O10.

Suggested Citation

  • Juan Hersztajn Moldau, 1998. "The microeconomic elements of the socioeconomic development indicators," Brazilian Journal of Political Economy, Center of Political Economy, vol. 18(3), pages 440-455.
    • Handle: RePEc:ekm:repojs:v:18:y:1998:i:3:p:440-455:id:1145
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    More about this item

    Keywords

    Development indicators; Sen poverty index; poverty measurement;
    All these keywords.

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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