Endogenous categorization of the human development

Julio Abad-González and Ricardo Martinez ()

Applied Economics Letters, 2017, vol. 24, issue 4, 243-246

Abstract: The human development index (HDI) is one of the most well-known measures of welfare. We apply clustering techniques to endogenously determine how similar countries are with respect to the HDI, and into how many categories they can be classified. We find that, in contrast to the usual assumption in the United Nations’ Human Development Reports, the number of categories is not fixed and has varied over time, from three in 1990 to four in 2014. We also find that the countries within each category differ from the United Nation’s proposal.

Date: 2017
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DOI: 10.1080/13504851.2016.1181703

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