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Using Meta-goal Programming for a New Human Development Indicator with Distinguishable Country Ranks

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  • Hussein Sayed
  • Ramadan Hamed
  • Mohamed Ramadan
  • Samaa Hosny

Abstract

This paper builds on the extensive literature of the benefit-of-the-doubt (BoD) methodology to set weights for composite indicators (CIs). The proposed methodology, meta-goal programming benefit of the doubt (MGP-BoD), proved to overcome some of the BoD shortcomings and enhance its performance. MGP-BoD belongs to the family of common-weights BoD models. It comprises of two sets of goals and two meta-goals. Among other merits, results prove two additional benefits of the MGP-BoD over older BoD. First, it enhances BoD discriminating power by eliminating all ties in CI values and, hence, country ranks. This high discriminating power is achieved in only one totally endogenous step. Second, MGP-BoD weights add up to one. This makes weights more insightful, interpretable, comparable to weights from other weighting systems, and easier to interpret compared to BoD. These additional merits favor MGP-BoD over previous weighting methods. In the meantime, the proposed method preserves a significantly high correlation with previous methods results as shown a set of Pearson and Spearman correlation tests to compare it to various previous methodologies. To validate the proposed methodology, it has been thoroughly tested using sensitivity and classification analyses. All tests are found highly significant. Nevertheless, the method has its own limitations that suggest future research points. Finally, the paper offers a new human development indicator (HDI) using 2012 data using MGP-BoD. The proposed HDI offers an alternative to the currently used equal-weights HDI that offers distinguishable country ranks and more policy-guiding weights. The highest weights are assigned to education variables. Copyright Springer Science+Business Media Dordrecht 2015

Suggested Citation

  • Hussein Sayed & Ramadan Hamed & Mohamed Ramadan & Samaa Hosny, 2015. "Using Meta-goal Programming for a New Human Development Indicator with Distinguishable Country Ranks," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 123(1), pages 1-27, August.
    • Handle: RePEc:spr:soinre:v:123:y:2015:i:1:p:1-27
    DOI: 10.1007/s11205-014-0723-6
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    2. Michela Gnaldi & Simone Del Sarto, 2018. "Variable Weighting via Multidimensional IRT Models in Composite Indicators Construction," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 136(3), pages 1139-1156, April.
    3. Su, Weihua & Chen, Sibo & Zhang, Chonghui & Li, Kevin W., 2023. "A subgroup dominance-based benefit of the doubt method for addressing rank reversals: A case study of the human development index in Europe," European Journal of Operational Research, Elsevier, vol. 307(3), pages 1299-1317.
    4. Chengjun Liu & Jingwen Tu & Yong He, 2023. "Measurement of China's Human Development Index and Analysis of Its Influencing Factors from the Perspective of New Development Concept," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 167(1), pages 213-268, June.
    5. Hashem Omrani & Mahsa Valipour & Ali Emrouznejad, 2019. "Using Weighted Goal Programming Model for Planning Regional Sustainable Development to Optimal Workforce Allocation: An Application for Provinces of Iran," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(3), pages 1007-1035, February.
    6. Oliveira, Renata & Zanella, Andreia & Camanho, Ana S., 2019. "The assessment of corporate social responsibility: The construction of an industry ranking and identification of potential for improvement," European Journal of Operational Research, Elsevier, vol. 278(2), pages 498-513.
    7. Chengjun Liu & Fuqiang Nie & Dong Ren, 2021. "Temporal and Spatial Evolution of China's Human Development Index and Its Determinants: An Extended Study Based on Five New Development Concepts," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 157(1), pages 247-282, August.
    8. Panagiotis Ravanos & Giannis Karagiannis, 2021. "A VEA Benefit-of-the-Doubt Model for the HDI," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(1), pages 27-46, May.
    9. Panagiotis Ravanos & Giannis Karagiannis, 2021. "Using VEA to assess effectiveness in the development of human capabilities," Economic Change and Restructuring, Springer, vol. 54(1), pages 75-99, February.
    10. Michela Gnaldi & M. Giovanna Ranalli, 2016. "Measuring University Performance by Means of Composite Indicators: A Robustness Analysis of the Composite Measure Used for the Benchmark of Italian Universities," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 129(2), pages 659-675, November.
    11. Hussein Sayed & Ramadan Hamed & Samaa Hazem Hosny & Alyaa Hegazy Abdelhamid, 2018. "Avoiding Ranking Contradictions in Human Development Index Using Goal Programming," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 138(2), pages 405-442, July.
    12. Karagiannis, Roxani & Karagiannis, Giannis, 2020. "Constructing composite indicators with Shannon entropy: The case of Human Development Index," Socio-Economic Planning Sciences, Elsevier, vol. 70(C).

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