tag:blogger.com,1999:blog-3252760795777865548.post8938029363760751195..comments2024-03-19T02:26:15.046-04:00Comments on The Map Scroll: Human Development in the United States, Part IChachyhttp://www.blogger.com/profile/11411695462568128245noreply@blogger.comBlogger32125tag:blogger.com,1999:blog-3252760795777865548.post-29976875885648888692015-08-14T12:37:41.383-04:002015-08-14T12:37:41.383-04:00good
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Actually, with respect to the effects of m...Andrew,<br />Actually, with respect to the effects of migration I would argue that retirement havens benefit from the inflow. Both Arizona and Florida have longer than average life expectancies and I suspect that is partially the result of their importing of relatively healthy retirees.<br /><br />As to race's role in life expectancy that is absolutely true. African Americans have both higher infant mortality rates and lower life expectancies post infancy even when you correct for other factors. Asian Americans on the other hand have longer life expectancies and I suspect that that is a major reason why Hawaii leads the nation in life expectancy. But while this may partially explain why the Deep South has such low life expectancies it does not account for the similarly poor performance found in the Uplands.<br /><br />I have corrected the data for RPP (cost of living) per Diego's suggestion and will probably email it to Chachy later today. Perhaps he can do another post on UN HDI in the near future. What I found by doing that was that 35 of the states max out on the income component when corrected for RPP. This only serves to increase the importance of life expectancy in explaining the differences in UN HDI.<br /><br />In fact that was one of the points of this post from my perspective. UN HDI is not a very useful index in trying to establish a relative level of development in the United States because it essentially devolves to a measurment of life expectancy due to the low standards of the income and education components. That is why I set out to create an Advanced Nation Human Development Index (ANHDI) described in the subsequent post. That too is a work in progress. I have incorporated RPP into that as well thanks to Diego's persistance in raising the issue, and similarly hope Chachy can do another post on RPP adjusted ANHDI.<br /><br />In fact when corrected for RPP, GDP per hour worked, or productivity, in many Northeastern states falls to the national average. Nevertheless, many of those states continue to lead the nation in ANHDI because of their performance on life expectancy and combined enrollment. Similarly, the when corrected for RPP, GDP per hour worked in the Deep South and the Uplands rises to the national average. but they still lag the nation in ANHDI because of their poor performance on life expectancy and combined enrollment.Mark A. Sadowskihttps://www.blogger.com/profile/13147923641894915172noreply@blogger.comtag:blogger.com,1999:blog-3252760795777865548.post-31407703595006847942009-06-27T14:17:08.181-04:002009-06-27T14:17:08.181-04:00Mark:
Regarding GDP, even capping it does not do ...Mark:<br /><br />Regarding GDP, even capping it does not do justice to the huge differences in living standards between states and regions. $50-$100K can buy a really nice house in many rural parts of the country. I can't think of much you could get for that in California or metro-New York to Boston. Also, the costs of food, utilities, gasoline, medical care, and other necessities vary wildly between high cost high "GDP" regions and low cost ones.<br /><br />The biggest drain on the appalachian/southern low GDP regions vs. high GDP regions is the uniform cost of cars around the country. Having to buy a new car or truck is a much bigger deal in the poorer areas than the wealthier ones. But that is probably the only area of sacrifice due to lower incomes. And it probably explains the prevelance of luxury brands in high GDP areas vs. low GDP areas. Not too many Mercedes and BMW's and Lexi in Mississippi, while new Jersey and Connecticut are overwhelmed with them.<br /><br />However, having to "make do" with a Lincoln instead of getting a Mercedes doesn't tell me that one area is "more developed" than another.Andrewnoreply@blogger.comtag:blogger.com,1999:blog-3252760795777865548.post-70394415333555352882009-06-27T14:09:27.746-04:002009-06-27T14:09:27.746-04:00Mark:
Just pinning most of the discrepancies on l...Mark:<br /><br />Just pinning most of the discrepancies on life expectancy doesn't tell us much either. On a worldwide scale, populations are not particularly mobile, with relatively little immigration compared to populations as a whole.<br /><br />With US states, not true. Its quite possible that the population of people who retires to warmer climates in the south from New England and New York is a self-selecting group that is less healthy than people who stay behind. This would boost life expectancy in origin states and supress it in receiver states.<br /><br />Also, its well known that black American have a lower life expectancy than white Americans. The south has a higher concentration of black Americans than New England, so we wouldn't be surprised that aggregate life expectancy is different. But is life expectancy of New England whites vastly different from Mississippi whites, and New England blacks from Mississippi blacks?<br /><br />It would also be enlightening to know if the life expectancy variance within racial groups between states is caused by occupational variations, such as the preponderance of people in agriculture, mining, and manufacturing down south vs. office occupations in the northeast. Or is it a case of infant mortality incidence causing much of the difference, where difference makes no difference to those who live past 5?Andrewnoreply@blogger.comtag:blogger.com,1999:blog-3252760795777865548.post-75329888712820118352009-06-27T11:35:04.445-04:002009-06-27T11:35:04.445-04:00Diego,
I finally managed to confirm what you are s...Diego,<br />I finally managed to confirm what you are saying. PPP is computed for the Eurozone by the Eurostat-OECD PPP Programme. The methodological manual is available here:<br /> http://epp.eurostat.ec.europa.eu<br />/cache/ITY_OFFPUB/KS-BE-06-002<br />/EN/KS-BE-06-002-EN.PDF<br /><br />Essentially they use Germany as the standard for purchasing power parity and make adjustments in terms of the "German Euro." Frankly I'm surprised that they do this and very embarrassed that I didn't know. <br /><br />What this means of course is that this map does not reflect PPP and so to be consistent with the UN HDI that should be incorporated. It turns out that the BEA has recently been using BLS data to construct something they call "regional price parities" (RPP). So far they appear to have only done it at the state level for the years 2005 and 2006. Ultimately this may become a part of their regular database. You can find the information here:<br /><br />http://www.bea.gov/scb/pdf/2008/11%20November/1108_spotlight_parities.pdf<br /><br />What I can do is adjust the data for 2005 RPP (in fact I'll do that today as I'm curious how things will change) and if Chachy is interested we could create yet another map. This also could have implications for the subsequent post.Mark A. Sadowskihttps://www.blogger.com/profile/13147923641894915172noreply@blogger.comtag:blogger.com,1999:blog-3252760795777865548.post-28709783039059194342009-06-27T03:26:16.608-04:002009-06-27T03:26:16.608-04:00Mark A. Sadowski,
Eurostat makes different price ...Mark A. Sadowski,<br /><br />Eurostat makes different price corrections for different European countries, be they in the eurozone or not. It is straightforward that a country like France is far more expensive than, say, Greece; so Eurostat converts euros into local PPS and concludes Greece's capital region (Attiki) is richer than France's average, despite it being poorer in nominal terms.<br /><br />This is a very important correction, since European funds are allocated according to PPS local wealth.<br /><br />You just have to compare nominal GDP per capita and PPS GDP per capita for different Eurozone countries and you'll see the different price corrections in action.<br /><br />Though not so familiar with other stats sources, I'm pretty sure that's the way the IMF (and possibly WB) stats are made.Unknownhttps://www.blogger.com/profile/10648157982963762597noreply@blogger.comtag:blogger.com,1999:blog-3252760795777865548.post-77772326955694883822009-06-26T20:09:21.677-04:002009-06-26T20:09:21.677-04:00Diego,
First of all thanks for constructive critic...Diego,<br />First of all thanks for constructive criticism. That which doesn't kill us can only make us stronger.<br /><br />I thought I was familiar with Eurostat methodology. If you think I am wrong in saying that there is no cost of living correction made in the Eurozone please point me in the right direction. <br /><br />I know Eurostat makes a PPS (Purchasing Power Standards) correction but it is my impression this only applies to the 11 EU states that don't use the Euro. <br /><br />Again, thanks for the kind comments and criticism.Mark A. Sadowskihttps://www.blogger.com/profile/13147923641894915172noreply@blogger.comtag:blogger.com,1999:blog-3252760795777865548.post-77636176833983425212009-06-26T19:06:47.580-04:002009-06-26T19:06:47.580-04:00Mark A. Sadowski,
first of all, thank you very mu...Mark A. Sadowski,<br /><br />first of all, thank you very much for this work. No matter how much criticism I can make about it, it is an excellent job.<br /><br />Now, you say: "Purchasing Power Parity (PPP) equalizes the purchasing power of different currencies in their home countries for a given basket of goods."<br /><br />In fact, that is not right. PPP data corrects for different price levels, even in the same currency zone. That's why Eurostat gives different PPP corrections for different Eurozone countries.<br /><br />I don't know how the UN calculated PPP data for HDI, but it is legitimate to ask about the real value of the index if no price-level correction is made.<br /><br />Anyway, thank you once again.Unknownhttps://www.blogger.com/profile/10648157982963762597noreply@blogger.comtag:blogger.com,1999:blog-3252760795777865548.post-22969589645525938282009-06-26T17:53:57.104-04:002009-06-26T17:53:57.104-04:00Thanks, Mark - fixed the map and the post.Thanks, Mark - fixed the map and the post.Chachyhttps://www.blogger.com/profile/11411695462568128245noreply@blogger.comtag:blogger.com,1999:blog-3252760795777865548.post-65540493900931584592009-06-26T16:00:12.781-04:002009-06-26T16:00:12.781-04:00Gus,
I'm glad you're delighted. I'm en...Gus,<br />I'm glad you're delighted. I'm enjoying this too. Your initial comment really made me think. Also, it takes some of the pain out of my spreadsheet error to hear some positive feedback. <br /><br />I have no educated comments on your other thoughts however. My intuition is that we are perhaps (oddly) becoming a more numerate society at the same time that our literacy (by whatever standard) is in decline.Mark A. Sadowskihttps://www.blogger.com/profile/13147923641894915172noreply@blogger.comtag:blogger.com,1999:blog-3252760795777865548.post-83194953188960275162009-06-26T15:22:57.724-04:002009-06-26T15:22:57.724-04:00This is great discussion. Reminds me of a really ...This is great discussion. Reminds me of a really good graduate seminar class.<br /><br />Mark - nice analysis on immigrants and literacy. I still wonder if we are measuring literacy at all in the U.S. I'm curious about these varying standards and whether literacy in general in the U.S. is declining as a whole, immigration aside. We imagine this to be impossible, but is it? This is a separate issue from the map, and which standard to use is up for grabs.<br /><br />Andrew - There are serious impediments to measuring geographical variation in poverty in the U.S. because data is generally collected in such a way as to ignore cost of living variations. Nevertheless, it is generally accepted by scholars that poverty in the U.S. is concentrated in the deep south and Appalachia. While there are poor people everywhere, and plenty of homeless on the streets of New York, it is likely that a higher proportion of residents of the deep south are poorer in any monetary terms (including relative ones) than the rest of the U.S. Your point is important though, and there needs to be a lot more work done to figure out just what the real disparity is. All of this just points up how hard it is to really measure a Human Development Index for any kind of regional comparison.<br /><br />I once heard a presentation from a scholar of geographic variation in U.S. poverty, and I almost asked her about this cost of living issue, but I didn't have the guts, or perhaps didn't want to embarrass her. I'm not sure she had a good answer, either.Gusnoreply@blogger.comtag:blogger.com,1999:blog-3252760795777865548.post-1649132195088562742009-06-26T14:18:00.634-04:002009-06-26T14:18:00.634-04:00Andrew,
The GDP component of the UN HDI is capped ...Andrew,<br />The GDP component of the UN HDI is capped at $40,000 per capita and 22 states and DC had their GDP per capita truncated because of that. Similarly literacy, by the low standards of the UN, is two thirds of the education index and that is more or less universal in the US. Most of the differences in UN HDI between the states consequently occur because of differences in life expectancy. In particular the states in the Upland and Deep South lag far behind the rest of the nation by this measure.Mark A. Sadowskihttps://www.blogger.com/profile/13147923641894915172noreply@blogger.comtag:blogger.com,1999:blog-3252760795777865548.post-68525156597451521102009-06-26T13:48:23.944-04:002009-06-26T13:48:23.944-04:00I'm mystified by these maps, because they seem...I'm mystified by these maps, because they seem mostly drive by per capita GDP.<br /><br />Yet the reason GDP is so much higher in places like California, Massachusetts, and New Jersey, for example, is that the high cost of living in those places, especially for housing and taxes, drives a need for high pay to get anyone to live there. The high pay creates a high GDP, since GDP is driven in the main by personal consumption and government spending, which is driven entirely by personal income.<br /><br />Having traveled over a great deal of this country, I've never had the impression that because Wall Street bankers are really highly paid, that NYC is somehow better developed than Mississippi or Montana.<br /><br />Just because some banker around New York or San Francisco pays $20 million for a 20 room mansion while you can buy the same house in the heartland for under $1 million, its doesn't follow that the the coastal area is "better developed" than the heartland because one banker is making 20 times as much as another.Andrewnoreply@blogger.com