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Constructing a Knowledge Economy Composite Indicator with Imprecise Data

Author

Listed:
  • Cherchye, Laurens

    (Katholieke Universiteit Leuven, Belgium)

  • Moesen, Willem

    (Katholieke Universiteit Leuven, Belgium)

  • Rogge, Nicky

    (Hogeschool-Universiteit Brussel (HUB), Belgium
    Katholieke Universiteit Leuven, Belgium)

Abstract

This paper focuses on the construction of a composite indicator for the knowledge based economy using imprecise data. Specifically, for some indicators we only have information on the bounds of the interval within which the true value is believed to lie. The proposed approach is based on a recent offspring in the Data Envelopment Analysis literature. Given the setting of evaluating countries, this paper discerns a strong country in weak environment and weak country in strong environment scenario resulting in respectively an upper and lower bound on countries performance. Accordingly, we derive a classification of benchmark countries, potential benchmark countries, and countries open to improvement.

Suggested Citation

  • Cherchye, Laurens & Moesen, Willem & Rogge, Nicky, 2009. "Constructing a Knowledge Economy Composite Indicator with Imprecise Data," Working Papers 2009/16, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
    • Handle: RePEc:hub:wpecon:200916
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    References listed on IDEAS

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    More about this item

    Keywords

    knowledge economy indicators; composite indicators; Multiple Imputation; Benefit of the Doubt; weight restrictions; Data Envelopment Analysis; data impreciseness;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access

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