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Lecture1

# 2 expected years of schooling index eysi eys 206

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Unformatted text preview: ower Parity (PPP) ì༎  The Indian GDP in US dollars calculated by using the oﬃcial exchange rate: 312,000/45=\$6,933 ì༎  Indian GDP in U.S. dollars is calculated by using US prices for each individual product or service and applying that price to Indian quan11es (i.e. PPP) Steel Retail Sales Personnel GDP 8x\$200 \$1,600 4x\$5,000 \$20,000 \$21,600 ì༎  Ra1o of PPP calcula1on of GDP to oﬃcial exchange rate: 21,600/6,933=3.1 Calculating GDP Growth ì༎  GDP growth is calculated using the following formula: ΔYt+1 Yt+1 − Yt gY = = Yt Yt Growth Around the World: A Brief Overview Growth Around the World: A Brief Overview ì༎ Economic Development Measuring Human Development ì༎  In order to quan1fy advances in human development the United Na1ons Development Program (UNDP) created the Human Development Index (HDI). ì༎  The HDI measures the ability of individuals to live a long and healthy life, acquire knowledge, and have access to recourse necessary to have decent standard of living. ì༎  Because the elements listed above do not lend themselves to easy comparison the HDI uses a normaliza1on technique that will provide measures of the three categories that can be transformed into a single index. The Human Development Index (HDI) ì༎  The HDI is currently calculated using the following formulas: Life Expectancy Index (LEI) = Educa1on Index (EI) = LE − 20 63.2 MYSI * EYSI 0.951 Mean Years of Schooling Index (MYSI) = MYS 13.2 Expected Years of Schooling Index (EYSI) = EYS 20.6 Income Index (II) = ln(GNI pc ) − ln(163) ln(108, 211) − ln(163) HDI = 3 LEI * EI * II What Do We Learn from The Human Development Index ì༎ The Millennium Development Goals Goal 1: Eradicate Extreme Poverty and Hunger ì༎  Target 1A: Halve the propor1on of people living on less than \$1 a day ì༎  Target 1B: Achieve Decent Employment for Women, Men, and Young People ì༎  Target 1C: Halve the propor1on of people who suﬀer from hunger Goal 1: Eradicate Extreme Poverty and Hunger ì༎  Quick Facts ì༎  The number of people living under the interna1onal poverty line of \$1.25 a day declined from 1.8 billion to 1.4 billion between 1990 and 2005. ì༎  The propor1on of people living in extreme poverty in developing regions dropped from 46 per cent to 27 per cent — on track to meet the target globally. ì༎  The economic crisis is...
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