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Constructing Composite Indicators with Collective Choice and Interval-Valued TOPSIS: The Case of Value Measure

Author

Listed:
  • Yelin Fu

    (Jinan University (Zhuhai Campus)
    The University of Hong Kong)

  • Kong Xiangtianrui

    (Shenzhen University)

  • Hao Luo

    (Shenzhen University)

  • Lean Yu

    (Beijing University of Chemical Technology)

Abstract

This paper is concerned with proposing a new mechanism to re-construct the published composite indicators that are conventionally aggregated in terms of equal weighting scheme, by means of taking all possible preferences among the indicators into account. Regarding to each preference, we apply a sophisticated mathematical transformation to formulate an interval metric. Inspired by the collective choice theory that integrates individual preference into social preference, an interval decision matrix is therefore formulated with preference as column. An interval-valued TOPSIS procedure in conjunction with Shannon entropy objective weights is applied to re-build composite indicators. The proposed methodology is illustrated by modifying the value measure of health systems. The Spearman’s rank correlation coefficients between Access, Satisfaction, Efficiency and two versions of value measure are calculated to perform the comparisons and demonstrate the superiority of our methodology.

Suggested Citation

  • Yelin Fu & Kong Xiangtianrui & Hao Luo & Lean Yu, 2020. "Constructing Composite Indicators with Collective Choice and Interval-Valued TOPSIS: The Case of Value Measure," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 152(1), pages 117-135, November.
    • Handle: RePEc:spr:soinre:v:152:y:2020:i:1:d:10.1007_s11205-020-02422-8
    DOI: 10.1007/s11205-020-02422-8
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