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Weights in Multidimensional Indices of Wellbeing: An Overview

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  • Koen Decancq
  • María Ana Lugo

Abstract

Multidimensional indices are becoming increasingly important instruments to assess the wellbeing of societies. They move beyond the focus on a single indicator and yet they are easy to present and communicate. A crucial step in the construction of a multidimensional index of wellbeing is the selection of the relative weights for the different dimensions. The aim of this article is to study the role of these weights and to critically survey eight different approaches to set them. We categorize the approaches in three classes: data-driven, normative, and hybrid weighting, and compare their respective advantages and drawbacks.

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File URL: http://hdl.handle.net/10.1080/07474938.2012.690641
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Bibliographic Info

Article provided by Taylor and Francis Journals in its journal Econometric Reviews.

Volume (Year): 32 (2013)
Issue (Month): 1 (January)
Pages: 7-34

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Handle: RePEc:taf:emetrv:v:32:y:2013:i:1:p:7-34

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  1. Hans de Kruijk & Martine Rutten, 2007. "WEIGHTING DIMENSIONS OF POVERTY BASED ON PEOPLES PRIORITIES: Constructing a Composite Poverty Index for the Maldives," IIDE Discussion Papers 20070801, Institue for International and Development Economics.
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