Week 1 Flashcards
1
Q
How to calculate HDI
A
HDI = H^1/3 E^1/3 I^1/3
2
Q
How to calculate income HDI
A
ln(actual income)- ln(minimum)/ln(max of 75000)-ln(minimum)
Why ln? - diminishing marginal returns to income
3
Q
Three components of HDI
A
Years of schooling (max 15, min 0)
Income (max 75000, min 100)
Life expectancy (max 85, min 20)
