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The Construction of a Synthetic Index Comparing Multidimensional Well-Being in the European Union

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  • Enrico Ivaldi
  • Guido Bonatti
  • Riccardo Soliani

Abstract

For many years, the quantification and measurement of level of well-being in a society has become an object of study by researchers, economists, international organizations and institutions. The purpose of these researches and applications is mainly the collection of data as accurate and complete as possible, dictating the paths of economic and social development policies, in order to help the economic problem of allocating scarce resources within a community, where not all individual needs can be fully met. The present work is intended as a part of that field. It will undertake the construction of a composite index of multidimensional well-being, through an aggregation of data, able to balance the trade-off between immediacy and completeness of information and to trespass the limits that characterize the commonly used income related measures. The method of factor analysis, which aims at detecting a statistically sufficient number of variables, is used to represent most of the explained variance of the phenomenon. Results are tested with different aggregative processes. This analysis is applied to the reality of the European Union, characterized by deep transformation and cultural, economic and social inequalities. Copyright Springer Science+Business Media Dordrecht 2016

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  • Enrico Ivaldi & Guido Bonatti & Riccardo Soliani, 2016. "The Construction of a Synthetic Index Comparing Multidimensional Well-Being in the European Union," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(2), pages 397-430, January.
    • Handle: RePEc:spr:soinre:v:125:y:2016:i:2:p:397-430
    DOI: 10.1007/s11205-014-0855-8
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    2. Gloria Polinesi, 2022. "COVID-19 and multidimensional well-being: the Italian case," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 76(4), pages 4-12, October-D.
    3. Diego Roldán M & Patricio Cárdenas & Francisco Roldán A. & Pablo Beltrán & Doménica Ávila, 2017. "Comparing Functional Forms Of Aggregation For Synthetic Indicators Of Well-Being: The Ecuadorian Case," Journal of Smart Economic Growth, , vol. 2(3), pages 107-122, December.
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    6. Delhey, Jan & Steckermeier, Leonie C., 2016. "The Good Life, Affluence, and Self-reported Happiness: Introducing the Good Life Index and Debunking Two Popular Myths," World Development, Elsevier, vol. 88(C), pages 50-66.
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    9. Gianni Betti & Antonella D'Agostino & Giulio Ghellini & Sergio Longobardi, 2020. "Measuring the impact of financial crisis on quality of life in Europe," Economics Bulletin, AccessEcon, vol. 40(1), pages 292-307.
    10. Custodio, Henry M. & Hadjikakou, Michalis & Bryan, Brett A., 2023. "A review of socioeconomic indicators of sustainability and wellbeing building on the social foundations framework," Ecological Economics, Elsevier, vol. 203(C).
    11. Bonanno, Graziella & D’Orio, Giovanni & Lombardo, Rosetta, 2020. "Generating well-being and efficiency: Evidence from Italy," Economic Analysis and Policy, Elsevier, vol. 65(C), pages 262-275.
    12. Casas i Klett, Tomas & Cozzi, Guido & Diebold, Celine & Zeller, Camille, 2020. "Measuring Elite Quality," MPRA Paper 102068, University Library of Munich, Germany.
    13. Cristina Bernini & Silvia Emili & Maria Rosaria Ferrante, 2023. "Poverty‐happiness nexus: Does the use of regional poverty lines matter?," Papers in Regional Science, Wiley Blackwell, vol. 102(2), pages 253-272, April.
    14. Man Liang & Shuwen Niu & Zhen Li & Wenli Qiang, 2019. "International Comparison of Human Development Index Corrected by Greenness and Fairness Indicators and Policy Implications for China," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 142(1), pages 1-24, February.
    15. Aleksandar Stanojević & Jože Benčina, 2019. "The Construction of an Integrated and Transparent Index of Wellbeing," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(3), pages 995-1015, June.
    16. Svenja Damberg & Lena Frömbling, 2022. "“Furry tales”: pet ownership’s influence on subjective well-being during Covid-19 times," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(5), pages 3645-3664, October.
    17. Claudia Burlando & Enrico Ivaldi & Alfonso Camporeale, 2016. "Un indicatore di qualit? percepita per il trasporto pubblico urbano: analisi delle macro-aree italiane," ECONOMIA E DIRITTO DEL TERZIARIO, FrancoAngeli Editore, vol. 2016(2), pages 267-282.
    18. Katia Iglesias & Christian Suter & Tugce Beycan & B. P. Vani, 2017. "Exploring Multidimensional Well-Being in Switzerland: Comparing Three Synthesizing Approaches," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(3), pages 847-875, December.
    19. Giancarlo MANZI & Pier Alda FERRARI & Sonia STEFANIZZI, 2017. "On the Impact of the European Union in Citizens’ Perception of Quality of Life," Departmental Working Papers 2017-08, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.

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