ECO 2117 Lecture 3: jan 21 2016 lecture notes
20 Aug 2016
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Document Summary
Dimensions of human development (living standard, health, education, housing, water, sanitation, nutrition, etc) Indicators (absolute poverty, life expectancy, under-nourishment, under 5 mortality, crude birth rate, adult literacy, etc) Composite indicators (hdi, both traditional and new) Different countries can be very similar in one dimension and certain commonalities are generally shared across developing countries. Knowledge (mean years of education and expected years of schooling. Hdi adds all three indicators and divides by 3. Nhdi uses the geometrical mean which punishes countries where the difference between indictors is big (the gm does not like inequality) Current age: mean age in the country. Increases with the age of every country. Income is measures as real per capita gdp in ppp. Logarithms take into account diminishing marginal utility (a poor person appreciates more than a rich person) The utility you get for each extra dollar is lower once you reach a certain point.
