The Determinants of Economic Well-being:An Application in the Indian States
The purpose of this paper is to explore the determinants of economic well-being. We provide a methodology to compute well-being by aggregating different socio-economic dimensions with factor analysis technique. We also estimate quality of good governance (using latent variable approach) and a financial decentralisation index. Panel data is employed to explore if better quality of institutional arrangements (of governance and more financial decentralisation) lead to better outcome in the economic well-being index. The evidence shows a strong positive link ( from using data of 16 major Indian states over four points of time (1970s to 1997-latest)).
Type of Document - pdf; pages: 34. pdf format 34 pages
Classification:
O1 - Economic Development ; C10 - Econometric and Statistical Methods: General. General ; C23 - Models with Panel Data ; R11 - Regional Economic Activity: Growth, Development, and Changes