Measuring of human development through the output-oriented super efficiency vrs. DEA model without inputs
Abstract
The Human Development Index (abbv. HDI) being a popular measure of human well-being has become a measure of human development. However, the HDI has received the major criticisms relating the data structure and the particularly equal weighting scheme. In this study, to eliminate mentioned shortcomings, the measurement of human development was again revisited in the light of data envelopment analysis (DEA). All of the variables used in HDI account were taken as output variables to sort out the relative performance of the countries. In the absence of input variables, and a case in which there are only output variables was reorganized by the formulation of super-efficiency model developed by Andersen and Petersen (1993). The formulation obtained was applied to the Radial based DEA model without inputs, which it is considered as the output of all of the relevant variables, and developed by Lovell and Pastor (1999).
References
Andersen, P., & Petersen, N.C. (1993). A procedure for ranking efficient units in data envelopment analysis. Management science, 39 (10), 1261-1264.
Baliamoune-Lutz, M., & McGillivray, M. (2006). Fuzzy well-being achievement in Pacific Asia. Journal of the Asia Pacific Economy, 11 (2), 168-177.
Banker, R. D., Charnes, A., & Cooper, W. W. (1984). Some models for estimating technical and scale inefficiencies in data envelopment analysis. Management Science, 30 (9), 1078-1092.
Bhanojirao, V. (1991). Human development report 1990: review and assessment. World Development, 19 (10), 1451-1460.
Charnes, A., Cooper, W. W., & Rhodes, E. (1978). Measuring the efficiency of decision-making units. European journal of operational research, 2 (6), 429-444.
Coelli, T., & Perelman, S. (2000). Technical efficiency of European railways: a distance function approach. Applied Economics, 32 (15), 1967-1976.
Cooper, W.W., Seiford, L.M., & Tone, K. (2007). Data envelopment analysis: a comprehensive text with models, applications, references and DEA-solver software: Springer Science & Business Media.
Cooper, W.W., Seiford, L.M., & Zhu, J. (2011). Data envelopment analysis: History, models, and interpretations Handbook on data envelopment analysis (pp. 1-39): Springer.
De Witte, K., Rogge, N., Cherchye, L., & Van Puyenbroeck, T. (2013). Economies of scope in research and teaching: A non-parametric investigation. Omega, 41 (2), 305-314.
Despotis, D. (2005). Measuring human development via data envelopment analysis: the case of Asia and the Pacific. Omega, 33 (5), 385-390.
Dias, R.A., Mattos, C.R., & Balestieri, J.A. (2006). The limits of human development and the use of energy and natural resources. Energy Policy, 34 (9), 1026-1031.
PO (DPT), State Planning Organization (2007). Ninth Five-Year Development Plan. Labor Market Specialization Commission Report (In Turkish).
Ebadi, S. (2012). Using a Super Efficiency Model for Ranking units in DEA. Applied Mathematical Sciences, 6 (41), 2043-2048.
Engineer, M., King, I., & Roy, N. (2008). The human development index as a criterion for optimal planning. Indian Growth and Development Review, 1 (2), 172-192.
Färe, R., & Karagiannis, G. (2014). Benefit-of-the-doubt aggregation and the diet problem. Omega, 47, 33-35.
Harttgen, K., & Klasen, S. (2012). A household-based human development index. World Development, 40 (5), 878-899.
Hicks, D.A. (1997). The inequality-adjusted human development index: a constructive proposal. World Development, 25 (8), 1283-1298.
Kelley, A.C. (1991). The Human Development Index:" Handle with Care". Population and Development Review, 17 (2), 315-324.
Lovell, C.K., & Pastor, J.T. (1999). Radial DEA models without inputs or without outputs. European Journal of operational research, 118 (1), 46-51.
Mahlberg, B., & Obersteiner, M. (2001). Remeasuring the HDI by data envelopement analysis. Available at SSRN 1999372.
Mariano, E.B., Sobreiro, V.A., & do Nascimento Rebelatto, D.A. (2015). Human development and data envelopment analysis: A structured literature review. Omega, 54, 33-49.
Moran, D.D., Wackernagel, M., Kitzes, J.A., Goldfinger, S.H., & Boutaud, A. (2008). Measuring sustainable development—Nation by nation. Ecological Economics, 64 (3), 470-474.
Morse, S. (2003). Greening the United Nations' human development index? Sustainable Development, 11 (4), 183-198.
Neumayer, E. (2001). The human development index and sustainability—a constructive proposal. Ecological Economics, 39 (1), 101-114.
Noorbakhsh, F. (1998). A modified human development index. World Development, 26 (3), 517-528.
Ogwang, T. (1994). The choice of principle variables for computing the Human Development Index. World Development, 22 (12), 2011-2014.
Poveda, A.C. (2011). Economic development and growth in Colombia: An empirical analysis with super-efficiency DEA and panel data models. Socio-Economic Planning Sciences, 45 (4), 154-164.
Prados de la Escosura, L. (2015). World human development: 1870–2007. Review of Income and Wealth, 61 (2), 220-247.
Ranis, G., Stewart, F., & Samman, E. (2005). Human development: Beyond the HDI. Yale University Economic Growth Center Discussion Paper (916).
Ravallion, M. (1997). Good and bad growth: the human development reports. World Development, 25 (5), 631-638.
Ravallion, M. (2012). Troubling tradeoffs in the human development index. Journal of Development Economics, 99 (2), 201-209.
Safari, H., & Ebrahimi, E. (2014). Using Modified Similarity Multiple criteria Decision Making technique to rank countries in terms of Human Development Index.
Sagar, A.D., & Najam, A. (1998). The human development index: a critical review. Ecological Economics, 25 (3), 249-264.
Sanusi, Y.A. (2008). Application of human development index to measurement of deprivations among urban households in Minna, Nigeria. Habitat International, 32 (3), 384-398.
Srinivasan, T.N. (1994). Human development: a new paradigm or reinvention of the wheel? The American Economic Review, 84, 238-243.
UNDP. (1995). Human Development Report. New York: UNDP.
Wolff, H., Chong, H., & Auffhammer, M. (2011). Classification, Detection and Consequences of Data Error: Evidence from the Human Development Index*. The Economic Journal, 121 (553), 843-870.
The Author wishes to submit the Work to SJM for publication. To enable SJM to publish the Work and to give effect to the parties’ intention set forth herein, they have agreed to cede the first right to publication and republication in the SJM Journal.
Cession
The Author hereby cedes to SJM, who accepts the cession, to the copyright in and to the paper.
The purpose of the cession is to enable SJM to publish the Work, as first publisher world-wide, and for republication in the SJM Journal, and to grant the right to others to publish the Work world-wide, for so long as such copyright subsists;
SJM shall be entitled to edit the work before publication, as it deems fit, subject to the Authors approval
The Author warrants to SJM that:
- the Author is the owner of the copyright in the Work, whether as author or as reassigned from the Author’s employee and that the Author is entitled to cede the copyright to SJM;
- the paper (or any of its part) is not submitted or accepted for publication in any other Journal;
- the Work is an original work created by the Author;
- the Author has not transferred, ceded, or assigned the copyright, or any part thereof, to any third party; or granted any third party a licence or other right to the copyright, which may affect or detract from the rights granted to SJM in terms of this agreement.
The Author hereby indemnifies the SJM as a body and its individual members, to the fullest extent permitted in law, against all or any claims which may arise consequent to the warranties set forth.
No monetary consideration shall be payable by SJM to the Author for the cession, but SJM shall clearly identify the Author as having produced the Work and ensure that due recognition is given to the Author in any publication of the Work.
Should SJM, in its sole discretion, elect not to publish the Work within 1 year after the date of this agreement, the cession shall lapse and be of no further effect. In such event the copyright shall revert to the Author and SJM shall not publish the Work, or any part thereof, without the Author’s prior written consent.