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The innovation of HDI versus GDP measurement significantly prefers countries with a more equal income distribution. This result also holds true for different data definitions and several indicators of distribution. It is also robust against some degree of error in the input data, identified using Monte Carlo simulations. The HDI thus reveals a clear implicit value judgement compared with GDP measurement. It provides an established distribution‐sensitive measure of development. Copyright © 2000 John Wiley & Sons, Ltd.
Journal of International Development – Wiley
Published: Jul 1, 2000
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