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OECD: One or Many? Ranking Countries with a Composite Well-Being Indicator

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  • Jesús Peiró-Palomino

    (University Jaume I)

  • Andrés J. Picazo-Tadeo

    (University of Valencia)

Abstract

This paper provides a composite indicator of well-being for the 35 OECD countries, as well as South Africa, Russia and Brazil for the period 2013–2016, considering data on 10 different well-being domains from the OECD Better Life Index. In a first stage, countries are ranked according to their well-being indicator, constructed combining Data Envelopment Analysis with the Benefit-of-the-Doubt principle and Multi-Criteria-Decision-Making techniques. In a second stage, well-being clubs are identified using hierarchical cluster analysis, revealing that well-being is highly polarised. Moreover, as well-being affects people, population size is accounted for in the cluster analysis, showing that for the largest proportion of people in our sample, well-being is remarkably low.

Suggested Citation

  • Jesús Peiró-Palomino & Andrés J. Picazo-Tadeo, 2018. "OECD: One or Many? Ranking Countries with a Composite Well-Being Indicator," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 139(3), pages 847-869, October.
    • Handle: RePEc:spr:soinre:v:139:y:2018:i:3:d:10.1007_s11205-017-1747-5
    DOI: 10.1007/s11205-017-1747-5
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    More about this item

    Keywords

    Composite indicators; Data Envelopment Analysis; Hierarchical cluster analysis; Multi-Criteria-Decision-Making; OECD Better Life Index; Well-being;
    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
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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