GS 29282 Fall 2021

Economics of Professor Bae

International Development

Assignment 1
Solution

1. N/A.

2. Visit this website: “http://hdr.undp.org/en/data/” to answer the ques-

tion. Then, find “http://hdr.undp.org/sites/default/files/hdr2020 technical notes.pdf.”
You can see “Technical note 1. Human Development Index” from page
2 to 4. You need to summarize it.

3.

a.
1
(1) OHDI = {II + HI + EI}.
3
ln(20, 000) − ln(100)
• II = = 0.8843.
ln(40, 000) − ln(100)
70 − 25
• HI = = 0.75.
85 − 25
2 80 − 0 1 75 − 0
• EI ( )+ ( ) = 0.7833.
3 100 − 0 3 100 − 0

(0.8843 + 0.75 + 0.7833)

Thus, OHDI = = 0.8059.
3

√
II · HI · EI.
3
(2) NHDI =

ln(19, 000) − ln(100)

• II = = 0.7926.
ln(75, 000) − ln(100)
70 − 20
• HI = = 0.7692.
85 − 20

1
 13 12
+
• EI = 15 18
= 0.7667.
2

√
0.7926 · 0.7692 · 0.7667 = 0.7761.
3
Thus, NHDI =

b. The country is a very high HDI country by OHDI criteria, but it is

a high HDI one by NHDI criteria.