A new index of welfare - An econometric approach on a new index of welfare generated with principal component analysis
(2010) NEKK01 20101Department of Economics
- Abstract
- Purpose: The purpose of this essay is to generate a wider measurement of welfare by carefully chosen variables in mainly three different areas: economic, socio-economic and environment in order to generate a welfare index which describes the world yesterday, today and tomorrow.
Method: With the Principal Component Analysis 14 variables from 115 coun-tries are studied and verified and analyzed with regression models, clus-ter analysis and time series analysis.
Conclusion: In the present of 2008 the Generated Index explains the HDI and DI in a fairly good way thus it has the possibility to replace the two of them. However in a longer period of time the index is not to be equal to HDI. As for the DI there is only data for a couple of... (More) - Purpose: The purpose of this essay is to generate a wider measurement of welfare by carefully chosen variables in mainly three different areas: economic, socio-economic and environment in order to generate a welfare index which describes the world yesterday, today and tomorrow.
Method: With the Principal Component Analysis 14 variables from 115 coun-tries are studied and verified and analyzed with regression models, clus-ter analysis and time series analysis.
Conclusion: In the present of 2008 the Generated Index explains the HDI and DI in a fairly good way thus it has the possibility to replace the two of them. However in a longer period of time the index is not to be equal to HDI. As for the DI there is only data for a couple of years and con-clusion of this cannot be drawn during a longer period of time. The Generated Index could instead perhaps be used as a crisis predictor of some sort. The correlation with the different crisis during the time period 1960-2008 is imminent and with some extended study of the model a better crisis predictor can possibly be created. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/1612856
- author
- Edfeldt, Johan LU
- supervisor
- organization
- course
- NEKK01 20101
- year
- 2010
- type
- M2 - Bachelor Degree
- subject
- keywords
- Welfare, Well-being, Principal Component Analysis (PCA), Cluster analysis, 1960-2008
- language
- English
- id
- 1612856
- date added to LUP
- 2010-06-18 14:15:10
- date last changed
- 2010-06-18 14:15:10
@misc{1612856, abstract = {{Purpose: The purpose of this essay is to generate a wider measurement of welfare by carefully chosen variables in mainly three different areas: economic, socio-economic and environment in order to generate a welfare index which describes the world yesterday, today and tomorrow. Method: With the Principal Component Analysis 14 variables from 115 coun-tries are studied and verified and analyzed with regression models, clus-ter analysis and time series analysis. Conclusion: In the present of 2008 the Generated Index explains the HDI and DI in a fairly good way thus it has the possibility to replace the two of them. However in a longer period of time the index is not to be equal to HDI. As for the DI there is only data for a couple of years and con-clusion of this cannot be drawn during a longer period of time. The Generated Index could instead perhaps be used as a crisis predictor of some sort. The correlation with the different crisis during the time period 1960-2008 is imminent and with some extended study of the model a better crisis predictor can possibly be created.}}, author = {{Edfeldt, Johan}}, language = {{eng}}, note = {{Student Paper}}, title = {{A new index of welfare - An econometric approach on a new index of welfare generated with principal component analysis}}, year = {{2010}}, }