The human development index as a criterion for optimal planning

Abstract

Planning strategies that maximize the Human Development Index (HDI) tend towards minimizing consumption and maximizing non-investment expenditures on education and health. Interestingly, such strategies also tend towards equitable outcomes, even though inequality aversion is not modelled in the HDI. A problematic feature of strategies that maximize the HDI is that the income component in the index only role is to distort the allocation between health and education expenditure. Because the income component does not play its intended role of securing resources for a decent standard of living, we argue that it is better to drop income from the index in considering optimal plans. Alternatively, we consider net income, income net of education and health expenditures, as indicator of capabilities not already reflected in the education and life expectancy components of the index. When net income is used in a modified HDI index, optimal plans yield a balance between allocations for consumption, education, and health. Finally, we calculate our modified indexes for OECD countries and compare them with the HDI.

Pobreza y descentralización fiscal. Un análisis empírico mediante panel de datos de países

“…Es patente que la literatura sobre economía ha estudiado el impacto que ha tenido la DF sobre la pobreza centrándose en ciertos países, áreas geográ-ficas y políticas sociales, dado que existe un amplio consenso en el sentido de que no todas las políticas sociales aplicadas tienen las mismas repercusiones en la desigualdad y la pobreza (Heady et al, 2001;Von Braun y Grote, 2002;Engineer et al, 2008). De hecho, Hall (2006) subrayó la importancia de concentrarse en la asistencia social en salud, educación y nutrición, ya que estas políticas generan sinergias entre los diversos componentes del capital humano que, según se considera, son esenciales para romper con el círculo vicioso de la pobreza intergeneracional.…”

Human and Nature Minding Automation

“…HDI combines normalized measures of the following three indicators 137,222,346 : HDI combines normalized measures of the following three indicators 137,222,346 :…”

“…137,222,226,346 Life expectancy (LE) at a given age is defined as the average number of years of life after that age, and depends very much on the sample community or group of people for which it is measured. 137,222,226,346 Life expectancy (LE) at a given age is defined as the average number of years of life after that age, and depends very much on the sample community or group of people for which it is measured.…”

“Healthy” Human Development Indices

“…Anand and Hanson (1997) andArnesen and Kapiriri (2004) show that using a morbidity indicator on its own leads to lopsided development planning Engineer et al (2008). examine how expenditures can be best allocated to improve broad-based development using the HDI.…”

“…2 The criticisms and responses are reviewed by Raworth and Stewart (2005). Also, see, Hicks (1997), Noorbakhsh (1998), Mazumdar (2003), Cahill (2005), Osberg and Sharpe (2005) and Engineer et al (2008). 3 Initially, the literacy rate was the only indicator used in the education index.…”