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But very cool video anyway. Very helpful! thanks

That is the arithmetic mean. The HDI actually uses the geometric mean to find the 'average' of the expected and mean years of education. So it would be I(Ev) - sqrt(EYSCv*MYSAv) where sqrt = square root. If you use the arithmetic mean, you don't care about the individual values for each index, you only care about their sum. So a country with a very high expected years and a very low mean years could still have a high average. By using the geometric mean you put more weight on them being close together, so a country can only get a really high education score if both mean and expected years are relatively high. Suppose EYSC = 14.4 and MYSA = 6. Then I(EYSC) = 14.4/18= 0.8 and I(MYSA) = 6/15 = 0.4. The arithmetic mean would be (0.8+0.4)/2 =0.6 but the geometric mean is sqrt(.0.8*0.4) = 0.566. Now suppose EYSC= 12.6 and MYSA = 7.5. The I(EYSC) = 12.6/18 = 0.7 and I(MYSA)= 7.5/15 = 0.5. The arithmetic mean would still be (0.7 + 0.5)/2 = 0.6 but the geometric mean is now sqrt(0.7*0.5) = 0.592. The value is higher because the two indexes are closer together.

@@nickgolding926 oh thanks, i’m understand this.

That's great. I'm glad the video was helpful. I am currently teaching a similar course

Thanks for the question. In this example, the probability of finding a job is taken as a given. This model is a theoretical model. It is meant to give predictions about how various changes to the economic situation or policy might affect migration rates. It would mainly predict the direction of change; whether there would be more or less migration. As presented, it is not really meant to incorporate real world statistics and to give a realistic numerical prediction. For that you would likely need a more sophisticated version of this model that was calibrated using statistics to predict migration flows for a specific country. Does that make sense?

Mr. @@nickgolding926 Thank you for the answer. this version is so lite that the explaination was easy to understand.

Yes. I just did it for a small group of people to make the calculation easy. If you have data on every household in the country or you have numbers for how many people fall into each income bracket, you could do the calculation. Things are a bit more complicated for real-world calculations because we have to make adjustments for different household sizes.

um... no man

i have never seen a graph drawn the way you described

Unless there opportunity cost is exactly the same, each of them have comparative advantage in one side. The degree of advantage may be relatively small if they are similar but they still have it. For this type of trade, absolute advantage is not relevant to thinking about which good to specialize in, but it does have an effect on the final outcome. For example, if someone has absolute advantage in both sides, then they may be made worse off by specializing and sharing equally with someone else. The person with absolute advantage in both goods will be subsidizing the other person.

Please give the name of the book you are referring to in the video

@@vivian1612 sorry I wasn't doing textbook reading--maybe message the uploader?