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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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    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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