Measuring Development, 1st ed. 2020 An Inequality Dominance Approach Themes in Economics Series

This book discusses how to measure the level of development of an economy, particularly, the task of ranking economies in terms of their development. In this context, development is defined as an increase in people?s level of wellbeing. The book emphasises that wellbeing is a multidimensional concept, and that it is important to ask how equitably the fruits of development are distributed, and as such it focuses on multidimensional, inequality-sensitive development ranking. Rather than using various specific development indices, which would lead to different development rankings for a country, the book proposes a dominance approach, which formulates conditions under which two economies can be ranked unambiguously, making it valid for all reasonable development indices. With the help of illustrative examples using real-world data, it demonstrates that such unambiguous rankings are possible, and that the proposed approach can be used to complement traditional approaches. An invaluable resource for researchers working in the field of development, the book will also appeal to practitioners engaged in measuring development.

Develops a new method for ranking economies in terms of their levels of development Obtains robust rankings but has the disadvantage of the possibility (though not the inevitability) of ranking failures, while the existing approach guarantees complete rankings but means having to use a specific index Provides illustrative empirical applications to show that using the proposed method ,the conditions under which a given pair of economies can be ranked are satisfied in many practical situations