Ratings and rankings: voodoo or science?
TLDR
In this article, the authors measure the importance of a given variable within existing composite indicators via Karl Pearson's "correlation ratio"; they call this measure the main effect, and they discuss to what extent the mapping from nominal weights to main effects can be inverted.Abstract:
Summary. Composite indicators aggregate a set of variables by using weights which are understood to reflect the variables’ importance in the index. We propose to measure the importance of a given variable within existing composite indicators via Karl Pearson's ‘correlation ratio’; we call this measure the ‘main effect’. Because socio-economic variables are heteroscedastic and correlated, relative nominal weights are hardly ever found to match relative main effects; we propose to summarize their discrepancy with a divergence measure. We discuss to what extent the mapping from nominal weights to main effects can be inverted. This analysis is applied to six composite indicators, including the human development index and two popular league tables of university performance. It is found that in many cases the declared importance of single indicators and their main effect are very different, and that the data correlation structure often prevents developers from obtaining the stated importance, even when modifying the nominal weights in the set of non-negative numbers with unit sum.read more
Citations
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Journal ArticleDOI
A subgroup dominance-based benefit of the doubt method for addressing rank reversals: A case study of the human development index in Europe
TL;DR: Zhang et al. as mentioned in this paper proposed a subgroup dominance-based BoD model (SD-BoD) to address the rank reversal problem in decision-making units (DMUs).
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Cultural, political and economic roots of the labor market institutional framework in the OECD and post-socialist countries
TL;DR: In this article, the authors evaluate cultural and political factors over economic factors in shaping the labor market institutional framework in the OECD and post-socialist countries in the years 2010?2015.
The Europe 2020 Regional Index
TL;DR: In this article, the authors developed a composite index to measure regional progress in meeting objectives set forth by the Europe 2020 strategy, and calculated the final composite scores by assigning equal weight to each dimension of the index and taking their arithmetic average.
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Multidimensional Poverty Index with Dependence-Based Weights
Kateryna Tkach,Chiara Gigliarano +1 more
TL;DR: In this paper, a new multidimensional poverty index accounting for the dependence and innovate over the weighting approach is proposed. But the index does not capture the dependence among the underlying indicators.
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Examining socioeconomic health disparities using a rank-dependent R\'{e}nyi index
TL;DR: The rank-dependent RI is shown to be more robust to changes in the distribution of either socioeconomic rank or health, and the parameters of the RI could be selected to reflect prioritizing those population groups for intervention or treatment.
References
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Book
Econometric Analysis of Cross Section and Panel Data
TL;DR: This is the essential companion to Jeffrey Wooldridge's widely-used graduate text Econometric Analysis of Cross Section and Panel Data (MIT Press, 2001).
Book ChapterDOI
The Analytic Hierarchy Process
Thomas L. Saaty,Kevin P. Kearns +1 more
TL;DR: Analytic Hierarchy Process (AHP) as mentioned in this paper is a systematic procedure for representing the elements of any problem hierarchically, which organizes the basic rationality by breaking down a problem into its smaller constituent parts and then guides decision makers through a series of pairwise comparison judgments to express the relative strength or intensity of impact of the elements in the hierarchy.
Report by the commission on the measurement of economic performance and social progress
TL;DR: As a measure of market capacity and not economic well-being, the authors pointed out that the two can lead to misleading indications about how well-off people are and entail the wrong policy decisions.
Book
Global Sensitivity Analysis: The Primer
TL;DR: In this article, the authors present a method for setting up Uncertainty and Sensitivity Analyses using Monte Carlo and Linear Regression (MCF) models and a set of experiments.
Journal ArticleDOI
The analytic hierarchy process—what it is and how it is used
TL;DR: In this paper, the Analytic Hierarchy Process (AHP) is introduced as a method of measurement with ratio scales and illustrated with two examples, and the axioms and some of the central theoretical underpinnings of the theory are discussed.