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

Lukas Schrott (), Martin Gaechter () and Engelbert Theurl ()
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Lukas Schrott: University of Applied Sciences Kufstein
Martin Gaechter: University of Innsbruck
Engelbert Theurl: University of Innsbruck

Authors registered in the RePEc Author Service: Martin Gächter ()

DANUBE: Law and Economics Review, 2015, issue 1, 1-23

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).

Keywords: Human Development Index; Regional Development; Decomposition; Austria (search for similar items in EconPapers)
Date: 2015
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Working Paper: Regional development in advanced countries: A within-country application of the Human Development Index for Austria (2012) Downloads
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