NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
loading...

Using Spatial Factor Analysis to Measure Human Development

Qihua Qiu, Jaesang Sung, Will Davis, Rusty Tchernis

NBER Working Paper No. 23952
Issued in October 2017
NBER Program(s):Development Economics, Public Economics

We propose a Bayesian factor analysis model as an alternative to the Human Development Index (HDI). Our model provides methodology which can either augment or build additional indices. In addition to addressing potential issues of the HDI, we estimate human development with three auxiliary variables capturing environmental health and sustainability, income inequality, and satellite observed nightlight. We also use our method to build a Millennium Development Goals (MDG) index as an example of constructing a more complex index. We find the “living standard” dimension provides a greater contribution to human development than the official HDI suggests, while the “longevity” dimension provides a lower proportional contribution. Our results also show considerable levels of disagreement relative to the ranks of official HDI. We report the sensitivity of our method to different specifications of spatial correlation, cardinal-to-ordinal data transforms, and data imputation procedures, along with the results of a simulated data exercise.

You may purchase this paper on-line in .pdf format from SSRN.com ($5) for electronic delivery.

Access to NBER Papers

You are eligible for a free download if you are a subscriber, a corporate associate of the NBER, a journalist, an employee of the U.S. federal government with a ".GOV" domain name, or a resident of nearly any developing country or transition economy.

If you usually get free papers at work/university but do not at home, you can either connect to your work VPN or proxy (if any) or elect to have a link to the paper emailed to your work email address below. The email address must be connected to a subscribing college, university, or other subscribing institution. Gmail and other free email addresses will not have access.

E-mail:

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w23952

Published: Qihua Qiu & Jaesang Sung & Will Davis & Rusty Tchernis, 2017. "Using spatial factor analysis to measure human development," Journal of Development Economics, . citation courtesy of

Users who downloaded this paper also downloaded* these:
Michalopoulos and Papaioannou w24088 Spatial Patterns of Development: A Meso Approach
Andries and Haddad w23958 Information Aversion
Asquith, Hellerstein, Kutzbach, and Neumark w23959 Social Capital and Labor Market Networks
Gollin, Kirchberger, and Lagakos w23916 In Search of a Spatial Equilibrium in the Developing World
Aizenman, Jinjarak, Ngo, and Noy w23950 Vocational Education, Manufacturing, and Income Distribution: International Evidence and Case Studies
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us