IDEAS home Printed from https://ideas.repec.org/a/spr/jopoec/v26y2013i4p1325-1345.html
   My bibliography  Save this article

An automatic-democratic approach to weight setting for the new human development index

Author

Listed:
  • Chris Tofallis

    ()

Abstract

Perhaps the most difficult aspect of constructing a multi-dimensional index is that of choosing weights for the components. This problem is often bypassed by adopting the ‘agnostic’ option of equal weights, as in the human development index. This is an annual ranking of countries produced by the United Nations Development Programme based on life expectancy, education, and per capita gross national income. These three dimensions are now aggregated multiplicatively. Whatever weights (exponents) are chosen for these dimensions, some nations will feel disadvantaged. To avoid the use of arbitrary weights, we propose for consideration a two-step approach: (1) find the most advantageous set of weights for each nation in turn, and (2) regress the associated optimal scores on the underlying indicators to find a single weight set. This approach has the properties of non-subjectivity, fairness, and convenience. The result is that the highest weight is placed on the life expectancy dimension. Copyright Springer-Verlag 2013

Suggested Citation

  • Chris Tofallis, 2013. "An automatic-democratic approach to weight setting for the new human development index," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(4), pages 1325-1345, October.
  • Handle: RePEc:spr:jopoec:v:26:y:2013:i:4:p:1325-1345
    DOI: 10.1007/s00148-012-0432-x
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s00148-012-0432-x
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Carmen Herrero & Ricardo Martínez & Antonio Villar, 2010. "Multidimensional Social Evaluation: An Application To The Measurement Of Human Development," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 56(3), pages 483-497, September.
    2. Grimm, Michael & Harttgen, Kenneth & Klasen, Stephan & Misselhorn, Mark, 2008. "A Human Development Index by Income Groups," World Development, Elsevier, vol. 36(12), pages 2527-2546, December.
    3. Hatefi, S.M. & Torabi, S.A., 2010. "A common weight MCDA-DEA approach to construct composite indicators," Ecological Economics, Elsevier, vol. 70(1), pages 114-120, November.
    4. Stéphane Blancard & Jean-François Hoarau, 2011. "Optimizing the new formulation of the United Nations' human development index: An empirical view from data envelopment analysis," Economics Bulletin, AccessEcon, vol. 31(1), pages 989-1003.
    5. Koen Decancq & María Ana Lugo, 2013. "Weights in Multidimensional Indices of Wellbeing: An Overview," Econometric Reviews, Taylor & Francis Journals, vol. 32(1), pages 7-34, January.
    6. Shyamal Chowdhury & Lyn Squire, 2006. "Setting weights for aggregate indices: An application to the commitment to development index and human development index," Journal of Development Studies, Taylor & Francis Journals, vol. 42(5), pages 761-771.
    7. Georges Nguefack-Tsague & Stephan Klasen & Walter Zucchini, 2011. "On Weighting the Components of the Human Development Index: A Statistical Justification," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 12(2), pages 183-202.
    8. McDonald, John, 2009. "Using least squares and tobit in second stage DEA efficiency analyses," European Journal of Operational Research, Elsevier, vol. 197(2), pages 792-798, September.
    9. Desai, Meghnad, 1991. "Human development : Concepts and measurement," European Economic Review, Elsevier, vol. 35(2-3), pages 350-357, April.
    10. Sagar, Ambuj D. & Najam, Adil, 1998. "The human development index: a critical review," Ecological Economics, Elsevier, vol. 25(3), pages 249-264, June.
    11. Morse, Stephen, 2003. "For better or for worse, till the human development index do us part?," Ecological Economics, Elsevier, vol. 45(2), pages 281-296, June.
    12. Høyland, Bjørn & Moene, Karl & Willumsen, Fredrik, 2012. "The tyranny of international index rankings," Journal of Development Economics, Elsevier, vol. 97(1), pages 1-14.
    13. Mark McGillivray & Nora Markova, 2010. "Global Inequality in Well-being Dimensions," Journal of Development Studies, Taylor & Francis Journals, vol. 46(2), pages 371-378.
    14. Charnes, A. & Cooper, W. W. & Seiford, L. & Stutz, J., 1982. "A multiplicative model for efficiency analysis," Socio-Economic Planning Sciences, Elsevier, vol. 16(5), pages 223-224.
    15. Reiter, S.L. & Steensma, H. Kevin, 2010. "Human Development and Foreign Direct Investment in Developing Countries: The Influence of FDI Policy and Corruption," World Development, Elsevier, vol. 38(12), pages 1678-1691, December.
    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


    Cited by:

    1. Zanella, Andreia & Camanho, Ana S. & Dias, Teresa G., 2015. "Undesirable outputs and weighting schemes in composite indicators based on data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 245(2), pages 517-530.
    2. repec:eee:ejores:v:270:y:2018:i:1:p:352-361 is not listed on IDEAS
    3. Urban Pauli, 2015. "SMEs GROWTH AND HUMAN CAPITAL INVESTMENTS (THE CASE OF POLAND)," JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, Babes-Bolyai University, Faculty of Business.
    4. Sorin Romulus Berinde & Partenie Dumbrava, 2015. "CORPORATE GOVERNANCE CHOICE REGARDING SMEs FINANCING STRATEGIES IN ROMANIA," JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, Babes-Bolyai University, Faculty of Business.
    5. Cornelia Pop, 2015. "Bucharest Stock Exchange Development Between 1995 And 2015," JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, Babes-Bolyai University, Faculty of Business.
    6. Maria-Lenuta Ciupac-Ulici, 2015. "Did European Countries Suffer From Different Calculation Of Hdi?," JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, Babes-Bolyai University, Faculty of Business.
    7. Ioan Cristian Chifu & Waseem Eid & Ioan Alin Nistor, 2015. "IT SECTOR DEVELOPMENT IN CLUJ-NAPOCA. THE CASE OF SMEs," JOURNAL STUDIA UNIVERSITATIS BABES-BOLYAI NEGOTIA, Babes-Bolyai University, Faculty of Business.
    8. Giménez, Víctor & Ayvar-Campos, Francisco Javier & Navarro-Chávez, José César Lenin, 2017. "Efficiency in the generation of social welfare in Mexico: A proposal in the presence of bad outputs," Omega, Elsevier, vol. 69(C), pages 43-52.
    9. repec:spr:soinre:v:138:y:2018:i:2:d:10.1007_s11205-017-1663-8 is not listed on IDEAS
    10. Mariano, Enzo Barberio & Sobreiro, Vinicius Amorim & Rebelatto, Daisy Aparecida do Nascimento, 2015. "Human development and data envelopment analysis: A structured literature review," Omega, Elsevier, vol. 54(C), pages 33-49.
    11. repec:eee:ejores:v:267:y:2018:i:1:p:381-392 is not listed on IDEAS
    12. Hussein Sayed & Ramadan Hamed & Mohamed Ramadan & Samaa Hosny, 2015. "Using Meta-goal Programming for a New Human Development Indicator with Distinguishable Country Ranks," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 123(1), pages 1-27, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jopoec:v:26:y:2013:i:4:p:1325-1345. 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: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.