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Weights in multidimensional indices of wellbeing: an overview

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  • DECANCQ, Koen
  • LUGO, Maria Ana

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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Suggested Citation

  • DECANCQ, Koen & LUGO, Maria Ana, 2013. "Weights in multidimensional indices of wellbeing: an overview," LIDAM Reprints CORE 2493, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:2493
    DOI: 10.1080/07474938.2012.690641
    Note: In : Econometric Reviews, 32(1), 7-34, 2013
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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.
    2. E. Schokkaert & E. Verhofstadt & L. Van Ootegem & -, 2009. "Measuring job quality and job satisfaction," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 09/620, Ghent University, Faculty of Economics and Business Administration.
    3. Andrea Brandolini, 2007. "On Synthetic Indices Of Multidimensional Well-Being: Health And Income Inequalities In France, Germany, Italy And The United Kingdom," CHILD Working Papers wp07_07, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
    4. GUIO Anne-Catherine & FUSCO Alessio & MARLIER Eric, 2009. "A European Union Approach to Material Deprivation using EU-SILC and Eurobarometer data," IRISS Working Paper Series 2009-19, IRISS at CEPS/INSTEAD.
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    More about this item

    JEL classification:

    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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