Giving a Step Further: A Proposal of Going Beyond the HDI

Piza, Caio Cicero Toledo , and Monica Yukie Kuwahara (2009). "Giving a Step Further: A Proposal of Going Beyond the HDI " Paper presented at the 6th annual conference of the HDCA, 10-12 September 2009, Lima, Peru.

TThe aim of this paper is to explore the multidimensionality of quality of life in 39 municipalities of Sao Paulo Metropolitan Region in Brazil. The main concern has to do with the appropriate procedure for making an indicator of quality of life distributive sensitive. In order to deal with this challenge, we propose a multidimensional index life quality (MIQL) which could be seen as an extended version of HDI. The index is based on six dimensions: (1) health, (2) education, (3) income, (4) housing, (5) infrastructure and environment, and (6) access to information. To make MIQL distributive sensitive, we follow the same steps of Foster et al (2003) by estimating the Atkinson index of welfare for each dimensional separately. There are two main results. First, the inequality sharply changes the ordering of municipalities in terms of life quality. Second, public policies should be concerned with the distribution of public resources.
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