An Economic Approach to Achievement and Improvement Indexes

This study proposes a usefulalternative to the ``aggregate deprivationindex' which is used to measure the well-beingsof individuals in different countries orgeographic locations. Furthermore, we alsopropose an improvement index which alleviateswell known difficulties associated withovertime comparisons of ``aggregate deprivationindex'. While deriving our indexes, we pursuedan economic approach to index numbers theoryand relied on the assumptions of optimizingbehavior. The proposed achievement index hasits roots in the theory of quantity indexeswhose axiomatic properties are wellestablished. The roots of our improvement indexon the other hand, is well grounded in theproductivity growth literature. The study alsoprovides a numerical example.