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Design and validation of a tax sustainability index

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  • Janová, Jitka
  • Hampel, David
  • Nerudová, Danuše

Abstract

Increasingly, indexes serve not only as descriptive but also as true decision support tools with the potential to influence important policies. These policies, however, may fail if based on a misinterpreted or doubted index. While a thorough index validation could significantly improve this situation, such validation is scarcely provided by socioeconomic studies presenting new indexes. The present study bridges this gap by providing a thorough index validation in the general case when a newly designed index (i) defines a new sustainability entity and (ii) serves not only as a relative but also as an absolute measure.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:ejores:v:278:y:2019:i:3:p:916-926
    DOI: 10.1016/j.ejor.2019.05.003
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