Abstract
The Human Development Index (abbv. HDI) being a popular measure of human well-being has become a measure of human development. However, the HDI has received the major criticisms relating the data structure and the particularly equal weighting scheme. In this study, to eliminate mentioned shortcomings, the measurement of human development was again revisited in the light of data envelopment analysis (DEA). All of the variables used in HDI account were taken as output variables to sort out the relative performance of the countries. In the absence of input variables, and a case in which there are only output variables was reorganized by the formulation of super-efficiency model developed by Andersen and Petersen (1993). The formulation obtained was applied to the Radial based DEA model without inputs, which it is considered as the output of all of the relevant variables, and developed by Lovell and Pastor (1999).
Highlights
It is more important to determine an appropriate measurement method rather than a selection of the indicator variables and consideration inequality within countries to measure human development. As it appears from the literature, made with an arbitrary weighting of the variables used in the Human Development Index (HDI) calculation and being a simple index based on a geometric mean is a situation that has been criticized
It was stated by Lovell and Pastor (1999) that output oriented Variable Returns to Scale (VRS) model is suitable to make an evaluation by taking advantage of radial based data envelopment analysis (DEA) models without input
According to this, when benefit of the doubt (BoD) approach is applied on super efficiency model, the sequencing of Decision Making Units (DMUs) will again be provided according to a composite index (CI)
Summary
Among the indexes aiming to measure human development, HDI had been one of the most prevalently used indicators for prosperity comparisons in its 20 years of history due to its transparency and simplicity as well as multi-dimensional prosperity measurement (Harttgen & Klasen, 2012). It is more important to determine an appropriate measurement method rather than a selection of the indicator variables and consideration inequality within countries to measure human development Since, as it appears from the literature, made with an arbitrary weighting of the variables used in the HDI calculation and being a simple index based on a geometric mean is a situation that has been criticized. As it appears from the literature, made with an arbitrary weighting of the variables used in the HDI calculation and being a simple index based on a geometric mean is a situation that has been criticized If this fundamental problem for the measurement of human development is exceeded, it can be re-ranking of countries by considering the different indicator variables. A literature review paper towards the utilization of the DEA conducted for the measurement of human development is made by Mariano et al (2015)
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