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Measuring well-being by a multidimensional spatial model in OECD Better Life Index framework

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  • Greco, Salvatore
  • Ishizaka, Alessio
  • Resce, Giuliano
  • Torrisi, Gianpiero

Abstract

One of the most influential measures of multidimensional well-being, the Better Life Index, launched by OECD in 2011, contains a detailed overview of the social, economic, and environmental performances of different countries. Since its launch, a relevant number of empirical studies have been proposed on these data, but the role played by the distance between societal priorities and country-level performance in Better Life Index as well as in multidimensional well-being remains underexplored. We propose to address this issue by means of a multidimensional spatial model. We position the countries in the Euclidean K-dimensional space in which each dimension is a specific aspect of well-being, and we consider each individual's opinion on the same dimensions to calculate the personal optimal point. The distance between the optimal point of well-being and the actual observed point at individual level is the individuals' loss in well-being. We show that the societal loss at country-level is negatively related to the overall well-being and the main indices of quality of democracy. Based on the above evidence, we would argue that a multidimensional spatial framework represents a promising tool for the analysis of the whole class of multidimensional measures of well-being in which a group of individuals expresses the weights individually assigned to a set of dimensions within a pre-established range.

Suggested Citation

  • Greco, Salvatore & Ishizaka, Alessio & Resce, Giuliano & Torrisi, Gianpiero, 2020. "Measuring well-being by a multidimensional spatial model in OECD Better Life Index framework," Socio-Economic Planning Sciences, Elsevier, vol. 70(C).
    • Handle: RePEc:eee:soceps:v:70:y:2020:i:c:s003801211830017x
    DOI: 10.1016/j.seps.2019.01.006
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    More about this item

    Keywords

    Multidimensional spatial model; Well-being; Better life index; OECD;
    All these keywords.

    JEL classification:

    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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