Optimizing the new formulation of the United Nations' human development index: an empirical view from data envelopment analysis

Stéphane Blancard () and Jean-François Hoarau
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Stéphane Blancard: CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - INRA - Institut National de la Recherche Agronomique - AgroSup Dijon - Institut National Supérieur des Sciences Agronomiques, de l'Alimentation et de l'Environnement

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Abstract: In this paper, we propose a new way to simulate an optimal Human Development Index [HDI]. Indeed, the formulation of the original HDI established by the United Nations Development Programme [UNDP] relies on a major methodological shortcoming, namely the contestable assumption that all component indices have the same weights. So, we implement a new approach to determine the optimal weights of each sub-indicator in the light of Data Envelopment Analysis [DEA]. Accordingly, we follow the multiplicative optimization approach introduced by Zhou et al. (2010), to assess robustly the relative performance of a set of 169 economies around the world in terms of human development. Finally, the new world ranking is close to and highly correlated with the standard HDI one, giving then some support to the equal weighting method adopted by the UNDP.

Keywords: DATA ENVELOPMENT ANALYSIS; HUMAN DEVELOPMENT INDEX; ECONOMIE DU DEVELOPPEMENT (search for similar items in EconPapers)
Date: 2011
Note: View the original document on HAL open archive server: https://hal.inrae.fr/hal-02642986v1
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Citations: View citations in EconPapers (7)

Published in Economics Bulletin, 2011, 31 (1), pp.989-1003

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Journal Article: Optimizing the new formulation of the United Nations' human development index: An empirical view from data envelopment analysis (2011)
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