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Choosing Aggregation Rules for Composite Indicators

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  • Giuseppe Munda

Abstract

From a formal point of view, a composite indicator is an aggregate of all dimensions, objectives, individual indicators and variables used for its construction. This implies that what defines a composite indicator is the set of properties underlying its mathematical aggregation convention. In this article, I try to revise the theoretical debate on aggregation rules by looking at contributions from both voting theory and multi-criteria decision analysis. This cross-fertilization helps in clarifying many ambiguous issues still present in the literature and allows discussing the key assumptions that may change the evaluation of an aggregation rule easily, when a composite indicator has to be constructed. Copyright Springer Science+Business Media B.V. 2012

Suggested Citation

  • Giuseppe Munda, 2012. "Choosing Aggregation Rules for Composite Indicators," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 109(3), pages 337-354, December.
    • Handle: RePEc:spr:soinre:v:109:y:2012:i:3:p:337-354
    DOI: 10.1007/s11205-011-9911-9
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    More about this item

    Keywords

    Voting paradoxes; Multi-criteria decision analysis; Rational choice; C43; C82;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access

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