Improving The Measurement Of Human Development
The authors propose a new Human Development Index that involves a number of changes with respect to the present one, even though it keeps the basic structure of the index (namely, preserving "Health", "Education" and "Material wellbeing" as the three basic dimensions of human development). The first change refers to the substitution of the arithmetic mean by the geometric mean, as a way of aggregating the different dimensions in a more sensible way. The second one leads to the introduction of distributive considerations in the evaluation of material wellbeing. The last change consists of the introduction of new variables to approach health and education, looking for a higher sensitivity of the index with respect to the differences between countries.