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Highlighting Methodological Limitations in the Steps of Composite Indicators Construction

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  • Issaka Dialga

    (University of Nantes)

  • Le Thi Hang Giang

    (University of Nantes)

Abstract

The paper opens the debate on the need to find a stable methodological framework in the construction of composite indicators (CIs) in order to address the methodological challenges including those of sensitivity and uncertainties related to methods used. As CIs are well-known to be essential in public debate, their methodological construction must be known by a large public. Illustrating CIs’ construction steps by a simple indicator, the paper aims to “democratize” this disciplinary field which is still a black box for some researchers but also to show how composite scores are sensitive to methods used and then, its impacts on policies. For example, in the Sustainable Development Indicator case, the geometric aggregation system is favorable to emerging countries which lead the ranking table whereas high income countries (which are leaders in the linear and equal weight system) except Australia, are misclassified. Uncertainty and sensitivity analysis confirm these results showing that the indexes’ scores seem to be influenced by the orientation (implied theoretical framework) given by its sponsors including policy makers. Regarding the validity of the index, correlation tests with some lights and well known indicators, reveal very consistent results.

Suggested Citation

  • Issaka Dialga & Le Thi Hang Giang, 2017. "Highlighting Methodological Limitations in the Steps of Composite Indicators Construction," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 131(2), pages 441-465, March.
    • Handle: RePEc:spr:soinre:v:131:y:2017:i:2:d:10.1007_s11205-016-1263-z
    DOI: 10.1007/s11205-016-1263-z
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    References listed on IDEAS

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    1. Jeni Klugman & Francisco Rodríguez & Hyung-Jin Choi, 2011. "The HDI 2010: new controversies, old critiques," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(2), pages 249-288, June.
    2. Raphaël Chiappini, 2012. "Les indices composites sont-ils de bonnes mesures de la compétitivité des pays ?," Working Papers hal-00745413, HAL.
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    Cited by:

    1. Karagiannis, Giannis & Ravanos, Panagiotis, 2023. "A composite indicator of social inclusion for EU based on the inverted BoD model," Socio-Economic Planning Sciences, Elsevier, vol. 88(C).
    2. Renaud Gaucher & Issaka Dialga & Coralie Vennin, 2022. "The indicator of a happy, long and sustainable life," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 159(1), pages 55-75, January.
    3. Milica Maricic & Jose A. Egea & Veljko Jeremic, 2019. "A Hybrid Enhanced Scatter Search—Composite I-Distance Indicator (eSS-CIDI) Optimization Approach for Determining Weights Within Composite Indicators," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 144(2), pages 497-537, July.
    4. Panagiotis Artelaris, 2022. "A development index for the Greek regions," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(3), pages 1261-1281, June.
    5. Atieno, Prisca, 2021. "The effects of outdated data and outliers on Kenya's 2019 Global Food Security Index score and rank," Research Theses 334773, Collaborative Masters Program in Agricultural and Applied Economics.
    6. Ferrara, Antonella Rita & Dijkstra, Lewis & McCann, Philip & Nisticó, Rosanna, 2022. "The response of regional well-being to place-based policy interventions," Regional Science and Urban Economics, Elsevier, vol. 97(C).
    7. Matheus Pereira Libório & Oseias da Silva Martinuci & Alexei Manso Correa Machado & Renata de Mello Lyrio & Patrícia Bernardes, 2022. "Time–Space Analysis of Multidimensional Phenomena: A Composite Indicator of Social Exclusion Through k-Means," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 159(2), pages 569-591, January.
    8. Matheus Pereira Libório & Lívia Maria Leite Silva & Petr Iakovlevitch Ekel & Letícia Ribeiro Figueiredo & Patrícia Bernardes, 2022. "Consensus-Based Sub-Indicator Weighting Approach: Constructing Composite Indicators Compatible with Expert Opinion," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(3), pages 1073-1099, December.
    9. Giannis Karagiannis & Panagiotis Ravanos, 2023. "A Composite Indicator of Social Inclusion for EU based on the Inverted BoD Model," Discussion Paper Series 2023_02, Department of Economics, University of Macedonia, revised Feb 2023.

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