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Communicating the uncertainty of synthetic indicators: a reassessment of the HDI ranking

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Listed:
  • Tommaso Luzzati
  • Bruno Cheli
  • Gianluca Gucciardi

Abstract

Composite indicators convert information about different facets of a given phenomenon into a single figure. Unavoidably, the conversion processE involves a high level of arbitrariness, which, in general, makes the results not robust. The approach to composite indicators used in this paper aims at mitigating this problem and makes final users more aware of the unavoidable uncertainty of the results (e.g. rankings) based on a given composite. We illustrate our approach by applying it to the Human Development Index.

Suggested Citation

  • Tommaso Luzzati & Bruno Cheli & Gianluca Gucciardi, 2017. "Communicating the uncertainty of synthetic indicators: a reassessment of the HDI ranking," Discussion Papers 2017/228, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    • Handle: RePEc:pie:dsedps:2017/228
    Note: ISSN 2039-1854
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    References listed on IDEAS

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    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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