IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/37534.html
   My bibliography  Save this paper

A note on the indeterminacy and arbitrariness of pena’s method of construction of synthetic indicators

Author

Abstract

In this paper we demonstrate that Pena’s method of construction of a synthetic indicator is very sensitive to the order in which the constituent variables (whose linear aggregation yields the synthetic indicator) are arranged. Since m number of constituent variables may be arranged in m-factorial ways, even a moderately large m can give rise to a very large number of synthetic indicators from which one cannot choose the one which best represents the constituent variables. Given that an analyst has too little information as to the order in which a sizeable number of constituent variables must be arranged so as to obtain the best representative synthetic indicator, Pena’s method can give only an arbitrary synthetic indicator whose representativeness is indeterminate and uncertain.

Suggested Citation

  • Mishra, SK, 2012. "A note on the indeterminacy and arbitrariness of pena’s method of construction of synthetic indicators," MPRA Paper 37534, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:37534
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/37534/1/MPRA_paper_37534.pdf
    File Function: original version
    Download Restriction: no

    File URL: https://mpra.ub.uni-muenchen.de/37554/1/MPRA_paper_37554.pdf
    File Function: revised version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mishra, SK, 2007. "A Note on Human Development Indices with Income Equalities," MPRA Paper 3513, University Library of Munich, Germany.
    2. Mishra, SK, 2008. "On construction of robust composite indices by linear aggregation," MPRA Paper 9232, University Library of Munich, Germany.
    3. Nayak, Purusottam & Ray, Santanu, 2010. "Human development in North East India: a critical appraisal," MPRA Paper 26494, University Library of Munich, Germany.
    4. José-María Montero & Coro Chasco & Beatriz Larraz, 2010. "Building an environmental quality index for a big city: a spatial interpolation approach combined with a distance indicator," Journal of Geographical Systems, Springer, vol. 12(4), pages 435-459, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mishra, SK, 2012. "A note on construction of heuristically optimal Pena’s synthetic indicators by the particle swarm method of global optimization," MPRA Paper 37625, University Library of Munich, Germany.
    2. Enrico Ivaldi & Guido Bonatti & Riccardo Soliani, 2017. "An Indicator for the Measurement of Political Participation: The Case of Italy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 132(2), pages 605-620, June.
    3. Nayak, Purusottam & Mishra, SK, 2012. "Efficiency of Pena’s P2 Distance in Construction of Human Development Indices," MPRA Paper 39022, University Library of Munich, Germany.
    4. Mishra, SK, 2012. "A comparative study of trends in globalization using different synthetic indicators," MPRA Paper 38028, University Library of Munich, Germany.
    5. Mishra, SK, 2012. "A maximum entropy perspective of Pena’s synthetic indicators," MPRA Paper 37797, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mishra, SK, 2012. "A note on construction of heuristically optimal Pena’s synthetic indicators by the particle swarm method of global optimization," MPRA Paper 37625, University Library of Munich, Germany.
    2. Mishra, SK, 2012. "A maximum entropy perspective of Pena’s synthetic indicators," MPRA Paper 37797, University Library of Munich, Germany.
    3. Sudhanshu K. MISHRA, 2016. "BA Note on Construction of a Composite Index by Optimization of Shapley Value Shares of the Constituent Variables," Turkish Economic Review, KSP Journals, vol. 3(3), pages 466-472, September.
    4. Nayak, Purusottam & Mishra, SK, 2012. "Efficiency of Pena’s P2 Distance in Construction of Human Development Indices," MPRA Paper 39022, University Library of Munich, Germany.
    5. Ángeles Sánchez-Domínguez & Maria J. Ruiz Martos, 2013. "Europe 2020 strategy: a strategy for which type of growth?," ThE Papers 13/11, Department of Economic Theory and Economic History of the University of Granada..
    6. Noelia Somarriba Arechavala & Pilar Zarzosa Espina & Bernardo Pena Trapero, 2015. "The Economic Crisis and its Effects on the Quality of Life in the European Union," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 120(2), pages 323-343, January.
    7. Michela Gnaldi & Simone Del Sarto, 2018. "Variable Weighting via Multidimensional IRT Models in Composite Indicators Construction," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 136(3), pages 1139-1156, April.
    8. Enrico Ivaldi & Guido Bonatti & Riccardo Soliani, 2017. "An Indicator for the Measurement of Political Participation: The Case of Italy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 132(2), pages 605-620, June.
    9. Narayan, Laxmi, 2011. "Some Aspect of Inter- District Disparities in Haryana," MPRA Paper 77451, University Library of Munich, Germany.
    10. José María Martín Martín & Jose Antonio Salinas Fernández & José Antonio Rodríguez Martín & Juan De Dios Jiménez Aguilera, 2017. "Assessment of the Tourism’s Potential as a Sustainable Development Instrument in Terms of Annual Stability: Application to Spanish Rural Destinations in Process of Consolidation," Sustainability, MDPI, vol. 9(10), pages 1-20, September.
    11. Kâzım Anıl Eren & Ahmet Atıl Aşıcı, 2018. "Subjective Well-Being in an Era of Relentless Growth: The Case of Turkey Between 2004 and 2014," Journal of Happiness Studies, Springer, vol. 19(5), pages 1347-1371, June.
    12. Mishra, SK, 2012. "Construction of Pena’s DP2-based ordinal synthetic indicator when partial indicators are rank scores," MPRA Paper 39088, University Library of Munich, Germany.
    13. Stossel, Zeev & Kissinger, Meidad & Meir, Avinoam, 2015. "Measuring the biophysical dimension of urban sustainability," Ecological Economics, Elsevier, vol. 120(C), pages 153-163.
    14. Mishra, SK, 2007. "Analysis of Gender Disparity in Meghalaya by Various Types of Composite Indices," MPRA Paper 3612, University Library of Munich, Germany, revised 18 Jun 2007.
    15. Nayak, Purusottam & Mishra, Sudhanshu K, 2014. "A State Level Analysis of the Status of Social Sector in India," MPRA Paper 58136, University Library of Munich, Germany.
    16. José Antonio Rodríguez Martín & José María Martín Martín & Juan Dios Jiménez Aguilera, 2018. "A Synthetic Indicator of Progress Towards the Millennium Development Goals 2, 3 and 4 in the Least Developed Countries (LDCs) of Asia," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 13(1), pages 1-19, March.
    17. Jane Rongerude & Mônica Haddad, 2016. "Cores and Peripheries: Spatial Analysis of Housing Choice Voucher Distribution in the San Francisco Bay Area Region, 2000--2010," Housing Policy Debate, Taylor & Francis Journals, vol. 26(3), pages 417-436, May.
    18. Ángeles Sánchez & Jorge Chica-Olmo & Juan de Dios Jiménez-Aguilera, 2018. "A Space–Time Study for Mapping Quality of Life in Andalusia During the Crisis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 135(2), pages 699-728, January.
    19. Alexei Manso Correa Machado & Petr Iakovlevitch Ekel & Matheus Pereira Libório, 2023. "Goal-based participatory weighting scheme: balancing objectivity and subjectivity in the construction of composite indicators," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(5), pages 4387-4407, October.
    20. Román Mínguez & José-María Montero & Gema Fernández-Avilés, 2013. "Measuring the impact of pollution on property prices in Madrid: objective versus subjective pollution indicators in spatial models," Journal of Geographical Systems, Springer, vol. 15(2), pages 169-191, April.

    More about this item

    Keywords

    Synthetic indicators; Composite Indices; Human development; NP-Hard problem;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:37534. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.