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Standard of living - Coggle Diagram

- - - - a better tool for domestic policy
    - - provides a nationality distinction
      - sizable amount of capital and labour invested abroad or into the country, as in the external wing of Singapore
- - - - more stressed about finding employing
    - - high levels of unemployment -> high levels of crime
- - - - Inaccurate estimates of national income
      - Non-marketed goods and services
      - Undeclared economic activities
    - - Changes in income distribution
      - Non-material welfare ignored
        
        Environmental factors (externalities, crime rates)
        
        Quality of life factors (leisure, stress)
      - Types of product ignored
      - Quantity of product ignored
  - - - Cost of living differences
    - - Reliability of data differs
      - Size of the hidden economy differs
      - Size of non-market economy differs
    - - Income distribution differs
      - Type of goods produced differ
      - Non-material well-being differ
- - - - measures income inequality
      - lies from 0 to 1, 0 being perfect income equality,
        1 being perfect income inequality
      - The greater the value of the Gini coefficient,
        the greater the income inequality
    - - Lorenz curve; cumulative percentage of total income
        plotted against the cumulative percentage of the corresponding population
      - Taking the area between the line of equality and the Lorenz curve / area under the line of equality
  - - - 3 key dimensions
        
        Long and Healthy Life
        
        Life expectancy at birth
        
        Knowledge
        
        Expected years of schooling
        
        Mean years of schooling
        
        A decent standard of living
        
        GNI per capita
      - Interpreting the HDI value
        
        between 0 and 1, 0 being the lowest
        and 1 being the highest
        
        Associated with
        
        Good Healthcare systems
        
        widely-available education
        
        Productive economy
        
        Affected by
        
        Improvement in material SOL
        
        Improvement in non-material SOL
        
        Higher literacy rates
        
        Higher life expectancy index
      - Limitations of the HDI value
        
        takes into account...
        
        Real GNI per head
        
        Life expectancy at birth
        
        educational attainment
        
        does not take into account...
        
        Political issues
        
        Social issues
        
        Economic freedom
        
        Human rights
        
        Protection against violence
        
        Discrimination and opportunities for creativity