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Geometric composite indicators with compromise Benefit-of-the-Doubt weights

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  • Verbunt, Pim
  • Rogge, Nicky

Abstract

This paper builds on Van Puyenbroeck and Rogge's (2017) ‘indirect’ multiplicative Benefit-of-the-Doubt (BoD) index number framework, in which the linear, data-driven BoD-model is used to estimate the importance of various sub-indicators within a geometric composite index (CI). We present an integrated framework that combines optimistic and pessimistic BoD-based weighting that enables to (1) establish the degree of unbalance in countries’ policy portfolio mix, (2) identify multiple underlying factors to explain inter-temporal evolution, and (3) explain for differences in country policy performances under the different weighting schemes following a multiplicative Bortkiewicz decomposition. In doing so, we use alternative optimistic and pessimistic BoD-models as existing models suffer from potential drawbacks in the identification of a country's comparative strengths and weaknesses. We illustrate our results with social inclusion data for the EU-countries for the period 2008-2013.

Suggested Citation

  • Verbunt, Pim & Rogge, Nicky, 2018. "Geometric composite indicators with compromise Benefit-of-the-Doubt weights," European Journal of Operational Research, Elsevier, vol. 264(1), pages 388-401.
    • Handle: RePEc:eee:ejores:v:264:y:2018:i:1:p:388-401
    DOI: 10.1016/j.ejor.2017.06.061
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    6. Vidoli, F.; & Fusco, E.; & Pignataro, G.; & Guccio, C.;, 2023. "Multi-directional Robust Benefit of the Doubt model: a comprehensive measure for the quality of health care in OECD countries," Health, Econometrics and Data Group (HEDG) Working Papers 23/14, HEDG, c/o Department of Economics, University of York.
    7. Ben Lahouel, Béchir & Ben Zaied, Younes & Taleb, Lotfi & Kočišová, Kristína, 2022. "The assessment of socio-environmental performance change: A Benefit of the Doubt indicator based on Directional Distance Function and Malmquist productivity index," Finance Research Letters, Elsevier, vol. 49(C).
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    11. L. P. Zhang & P. Zhou, 2019. "Reassessment of global climate risk: non-compensatory or compensatory?," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 95(1), pages 271-287, January.
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    15. Gong, Chengzhu & Gong, Nianjiao & Qi, Rui & Yu, Shiwei, 2020. "Assessment of natural gas supply security in Asia Pacific: Composite indicators with compromise Benefit-of-the-Doubt weights," Resources Policy, Elsevier, vol. 67(C).
    16. Janová, Jitka & Hampel, David & Nerudová, Danuše, 2019. "Design and validation of a tax sustainability index," European Journal of Operational Research, Elsevier, vol. 278(3), pages 916-926.
    17. Pinar, Mehmet & Stengos, Thanasis & Topaloglou, Nikolas, 2020. "On the construction of a feasible range of multidimensional poverty under benchmark weight uncertainty," European Journal of Operational Research, Elsevier, vol. 281(2), pages 415-427.
    18. Tianjiao Wang & Yelin Fu, 2020. "Constructing Composite Indicators with Individual Judgements and Best–Worst Method: An Illustration of Value Measure," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 149(1), pages 1-14, May.
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