An Alternative approach to measure HDI

摘要: The popularly known Human Development Index (HDI) is obtained through linear averaging (LA) of indices in three dimensions - health, education and standard living. LA method assumes perfect substitutability among the indices. We question its appropriateness propose an alternative measure, which inverse Euclidian distance from ideal. Following Zeleny (1974), we refer to this, as Displaced Ideal (DI) method. Through axiomatic characterization, paper shows that advantages DI are following. Uniform, against skewed, development rewarded. ideal path, it signals a future course action. These signify given increment any one dimension, with other remaining constant, has greater significance for index at lower level than higher level. In words, stagnancy dimension value more serious dimensions. Finally, empirical illustration been done by taking statistics Report 2006. strongly be considered over construction HDI.