Yet, Two More Revisions to the Human Development Index

The Inequality-adjusted Human Development Index (IHDI) was adopted in the 20th anniversary edition of the <italic>Human Development Reports</italic>, in 2010. In using a penalty set-up for the calculations of the IHDI, however, the results overestimated the adjustments. This article suggests a revision to the procedure in order to harmonize the calculations with the underlying attainment set-up of the Human Development Index and minimize the bias in the adjustments. This article also suggests an extension to the IHDI, specifically the inclusion of a subjective measure of inequality in the calculation of the IHDI.