115 disc notes

# 115 disc notes - o Measuring health HDI employs nation’s life expectancy at birth as proxy for living a long healthy life HDI sets the life

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g = constraint y t = y 0 (1+g) = y0 + y0 * g gdp values for 35 years when graphing, x values in one column and y in another want to see how GDP changes over time GDP y Log is easier to turn it to linear function Human Development Index What is it? o Having choices in life o 3 essential choices are health, education, and access to resources needed for a decent standard of living o Other choices such as political, economic, and social freedom, opportunities to be creative and productive, etc are also important o Development is more than just expansion of income and wealth How to measure it? o For each of 3 basic elements (health, education, and the resources needed for decent standard of living, a specific measure was constructed and aggregated into this index o Since all 3 elements have diff units of measurement, each outcome must be converted into an index # to permit aggregation into a composite measure HDI = H (yrs) + E (%) + Y (\$)

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Unformatted text preview: o Measuring health HDI employs nation’s life expectancy at birth as proxy for living a long, healthy life HDI sets the life expectancy range from a min value of 25 yrs to a max of 85 (the “goalposts”) A country’s HDI Life Expectancy Index is a measure of its own life expectancy compared to these max and min scores Ex: Cuba’s life expectancy is 78.5 years calculated: (78.5-25)/(85-78.5) = 0.847 Cuba attains 84.7% of the potential range in life expectancy o Measuring knowledge HDI computes weighted avg of adult literacy and combined gross enrollment rate of primary, secondary, and tertiary schooling Adult lit. rate is given 2/3 of weight, w/ remaining 1/3 going to gross enrollment rate Recent goalposts: 0 to 100 Ex: Cuba’s literacy rate (exog. variable): 99.8% Cuba’s knowledge o Measuring access to resources...
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## This document was uploaded on 09/11/2011.

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115 disc notes - o Measuring health HDI employs nation’s life expectancy at birth as proxy for living a long healthy life HDI sets the life

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