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Analyzing Human Opportunity Changes: Methods and Limitations

Learn how to compute the Human Opportunity Index, identify circumstance groups, compute coverage rates, analyze inequality, and understand the limitations of the index. Explore a new approach sensitive to transfers among vulnerable groups and discover how changes in distribution impact the index.

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Analyzing Human Opportunity Changes: Methods and Limitations

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  1. Computing, Decomposing and Interpreting Changes in the Human Opportunity Index - HOI Ricardo Paes de Barros - SAE Brasília, April 2011

  2. 1.How to compute the HOI? Identify the circumstance groups

  3. 1. How to compute the HOI? Identify the circumstance groups Compute all group specific coverage rates

  4. 1. How to compute the HOI? Identify the circumstance groups Compute all group specific coverage rates Compute the overall coverage rate

  5. 1. How to compute the HOI? Identify the circumstance groups Compute all group specific coverage rates Compute the overall coverage rate Compute all inequality of opportunity consistent coverage rates

  6. 1. How to compute the HOI? Identify the circumstance groups Compute all group specific coverage rates Compute the overall coverage rate Compute all inequality of opportunity consistent coverage rates Compute the HOI as the average of all inequality of opportunity consistent coverage rates

  7. 2. HOI as the overall coverage rate minus a penalty due to violation of the principle of equal opportunity

  8. 3. An important limitation of HOI: Total lack of sensitivity to transfers among vulnerable groups

  9. 3 3

  10. 4. Introducing a new HOI sensitive to transfers among vulnerable groups: The geometric mean

  11. 5. Decomposing changes in HOI: The Scale and Equalizing Effects

  12. 6. Optimum targetingand the losses due to imperfect targeting

  13. 7. Decomposing changes in HOI: The Role of Changes in the Distribution of Circumstances

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