Human Development Index (HDI) currently, as published by the UNDP is calculated by using which of the following?

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UGC NET Paper 2: Economics 24th Nov 2021 Shift 1
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  1. Geometric Mean
  2. Arithmetic Mean
  3. Harmonic Mean
  4. Quadratic Mean

Answer (Detailed Solution Below)

Option 1 : Geometric Mean
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UGC NET Paper 1: Held on 21st August 2024 Shift 1
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The correct answer is Geometric Mean

Key Points Human Development Index:

The Human Development Index (HDI) provides a single index measure to capture three key dimensions of human development: a long and healthy life, access to knowledge and a decent standard of living

The HDI utilizes four key metrics:

  • life expectancy at birth – to assess a long and healthy life
  • expected years of schooling – to assess access to knowledge of the young generation
  • average years of schooling – to assess access to knowledge of the older generation
  • gross national income (GNI) per capita – to assess the standard of living

Important Points Calculation of HDI:

The HDI is calculated as the geometric mean (equally-weighted) of life expectancy, education, and GNI per capita, as follows:

\(HDI = (I_\text{health}*I_\text{Education} * I_{Income})\)

Assessment of Dimensions:

  • The life expectancy at birth is used to evaluate the health dimension.
  • The mean number of years spent in school for persons 25 years and older and the anticipated number of years spent in school for young children are used to evaluate the education dimension.
  • Gross national income per person is used to measure the standard of living dimension.
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