IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

A common weight MCDA-DEA approach to construct composite indicators

  • Hatefi, S.M.
  • Torabi, S.A.
Registered author(s):

    A common weight multi criteria decision analysis (MCDA)-data envelopment analysis (DEA) approach is proposed to construct composite indicators (CIs). The proposed MCDA-DEA model enables the construction of CIs among all entities via a set of common weights. The model is capable to discriminate entities which receive CI score of 1, i.e., the efficient entities leading to determination of a single best entity. Common weights structure of the proposed model has more discriminating power when compared to those obtained by previous DEA-like models. In order to validate the proposed MCDA-DEA model, it is applied to two case studies taken from the literature to construct two well-known CIs, i.e., Sustainable Energy Index (SEI) and Human Development Index (HDI). Both the robustness and discriminating power of the proposed method are studied through these case studies and tested by Spearman's rank correlation coefficient. The results reveal several merits of the proposed method in constructing CIs.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.sciencedirect.com/science/article/B6VDY-512FTHG-1/2/5b94802de4e8a8cd5b89a5196dd7acc9
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Elsevier in its journal Ecological Economics.

    Volume (Year): 70 (2010)
    Issue (Month): 1 (November)
    Pages: 114-120

    as
    in new window

    Handle: RePEc:eee:ecolec:v:70:y:2010:i:1:p:114-120
    Contact details of provider: Web page: http://www.elsevier.com/locate/ecolecon

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Ulucan, AydIn & BarIs AtIcI, KazIm, 2010. "Efficiency evaluations with context-dependent and measure-specific data envelopment approaches: An application in a World Bank supported project," Omega, Elsevier, vol. 38(1-2), pages 68-83, February.
    2. Laurens Cherchye & Erwin Ooghe & Tom Puyenbroeck, 2008. "Robust human development rankings," Journal of Economic Inequality, Springer, vol. 6(4), pages 287-321, December.
    3. Hope, Chris & Parker, Jonathan & Peake, Stephen, 1992. "A pilot environmental index for the UK in the 1980s," Energy Policy, Elsevier, vol. 20(4), pages 335-343, April.
    4. Zhou, P. & Ang, B.W. & Poh, K.L., 2007. "A mathematical programming approach to constructing composite indicators," Ecological Economics, Elsevier, vol. 62(2), pages 291-297, April.
    5. Hajkowicz, Stefan, 2006. "Multi-attributed environmental index construction," Ecological Economics, Elsevier, vol. 57(1), pages 122-139, April.
    6. Diaz-Balteiro, Luis & Romero, Carlos, 2004. "In search of a natural systems sustainability index," Ecological Economics, Elsevier, vol. 49(3), pages 401-405, July.
    7. P. Zhou & B. Ang & D. Zhou, 2010. "Weighting and Aggregation in Composite Indicator Construction: a Multiplicative Optimization Approach," Social Indicators Research, Springer, vol. 96(1), pages 169-181, March.
    8. Michela Nardo & Michaela Saisana & Andrea Saltelli & Stefano Tarantola & Anders Hoffman & Enrico Giovannini, 2005. "Handbook on Constructing Composite Indicators: Methodology and User Guide," OECD Statistics Working Papers 2005/3, OECD Publishing.
    9. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    10. Timo Kuosmanen & Laurens Cherchye & Timo Sipiläinen, 2003. "The Law of One Price in Data Envelopment Analysis: Restricting Weight Flexibility Across Firms," Microeconomics 0312006, EconWPA, revised 18 Dec 2003.
    11. M. Saisana & A. Saltelli & S. Tarantola, 2005. "Uncertainty and sensitivity analysis techniques as tools for the quality assessment of composite indicators," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 168(2), pages 307-323.
    12. Laurens Cherchye & Willem Moesen & Nicky Rogge & Tom Puyenbroeck, 2007. "An Introduction to ‘Benefit of the Doubt’ Composite Indicators," Social Indicators Research, Springer, vol. 82(1), pages 111-145, May.
    13. Sagar, Ambuj D. & Najam, Adil, 1998. "The human development index: a critical review," Ecological Economics, Elsevier, vol. 25(3), pages 249-264, June.
    14. Jefferson, Michael, 2006. "Sustainable energy development: performance and prospects," Renewable Energy, Elsevier, vol. 31(5), pages 571-582.
    15. Ebert, Udo & Welsch, Heinz, 2004. "Meaningful environmental indices: a social choice approach," Journal of Environmental Economics and Management, Elsevier, vol. 47(2), pages 270-283, March.
    16. Despotis, D.K., 2005. "Measuring human development via data envelopment analysis: the case of Asia and the Pacific," Omega, Elsevier, vol. 33(5), pages 385-390, October.
    17. Kao, Chiang & Hung, Hsi-Tai, 2008. "Efficiency analysis of university departments: An empirical study," Omega, Elsevier, vol. 36(4), pages 653-664, August.
    18. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    19. Cherchye, Laurens & Kuosmanen, Timo, 2004. "Benchmarking Sustainable Development: A Synthetic Meta-index Approach," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
    20. Li, Xiao-Bai & Reeves, Gary R., 1999. "A multiple criteria approach to data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 115(3), pages 507-517, June.
    21. Kao, Chiang, 2010. "Malmquist productivity index based on common-weights DEA: The case of Taiwan forests after reorganization," Omega, Elsevier, vol. 38(6), pages 484-491, December.
    22. Giuseppe Munda, 2005. "“Measuring Sustainability”: A Multi-Criterion Framework," Environment, Development and Sustainability, Springer, vol. 7(1), pages 117-134, 01.
    23. Roll, Y & Golany, B., 1993. "Alternate methods of treating factor weights in DEA," Omega, Elsevier, vol. 21(1), pages 99-109, January.
    24. Zhou, Peng & Poh, Kim Leng & Ang, Beng Wah, 2007. "A non-radial DEA approach to measuring environmental performance," European Journal of Operational Research, Elsevier, vol. 178(1), pages 1-9, April.
    25. Zhou, P. & Ang, B.W. & Poh, K.L., 2006. "Comparing aggregating methods for constructing the composite environmental index: An objective measure," Ecological Economics, Elsevier, vol. 59(3), pages 305-311, September.
    26. Krajnc, Damjan & Glavic, Peter, 2005. "How to compare companies on relevant dimensions of sustainability," Ecological Economics, Elsevier, vol. 55(4), pages 551-563, December.
    27. Ramanathan, Ramakrishnan & Yunfeng, Jiang, 2009. "Incorporating cost and environmental factors in quality function deployment using data envelopment analysis," Omega, Elsevier, vol. 37(3), pages 711-723, June.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:70:y:2010:i:1:p:114-120. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.