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Highlighting Methodological Limitations in the Steps of Composite Indicators Construction

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  • Issaka Dialga

    (University of Nantes)

  • Le Thi Hang Giang

    (University of Nantes)

Abstract

The paper opens the debate on the need to find a stable methodological framework in the construction of composite indicators (CIs) in order to address the methodological challenges including those of sensitivity and uncertainties related to methods used. As CIs are well-known to be essential in public debate, their methodological construction must be known by a large public. Illustrating CIs’ construction steps by a simple indicator, the paper aims to “democratize” this disciplinary field which is still a black box for some researchers but also to show how composite scores are sensitive to methods used and then, its impacts on policies. For example, in the Sustainable Development Indicator case, the geometric aggregation system is favorable to emerging countries which lead the ranking table whereas high income countries (which are leaders in the linear and equal weight system) except Australia, are misclassified. Uncertainty and sensitivity analysis confirm these results showing that the indexes’ scores seem to be influenced by the orientation (implied theoretical framework) given by its sponsors including policy makers. Regarding the validity of the index, correlation tests with some lights and well known indicators, reveal very consistent results.

Suggested Citation

  • Issaka Dialga & Le Thi Hang Giang, 2017. "Highlighting Methodological Limitations in the Steps of Composite Indicators Construction," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 131(2), pages 441-465, March.
    • Handle: RePEc:spr:soinre:v:131:y:2017:i:2:d:10.1007_s11205-016-1263-z
    DOI: 10.1007/s11205-016-1263-z
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    3. Milica Maricic & Jose A. Egea & Veljko Jeremic, 2019. "A Hybrid Enhanced Scatter Search—Composite I-Distance Indicator (eSS-CIDI) Optimization Approach for Determining Weights Within Composite Indicators," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 144(2), pages 497-537, July.
    4. Panagiotis Artelaris, 2022. "A development index for the Greek regions," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(3), pages 1261-1281, June.
    5. Matheus Pereira Libório & Elisa Fusco & Alexandre Magno Alves Diniz & Oséias da Silva Martinuci & Petr Iakovlevitch Ekel, 2024. "A Novel Approach for Multispatial and Multitemporal Analysis of Composite Indicators," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 173(3), pages 783-800, July.
    6. Atieno, Prisca, 2021. "The effects of outdated data and outliers on Kenya's 2019 Global Food Security Index score and rank," Research Theses 334773, Collaborative Masters Program in Agricultural and Applied Economics.
    7. Ferrara, Antonella Rita & Dijkstra, Lewis & McCann, Philip & Nisticó, Rosanna, 2022. "The response of regional well-being to place-based policy interventions," Regional Science and Urban Economics, Elsevier, vol. 97(C).
    8. Matheus Pereira Libório & Alexandre Magno Alvez Diniz & Angélica Cidália Gouveia Santos & Cristiane Neri Nobre & Douglas Alexandre Gomes Vieira & Hasheem Mannan & Marcos Flávio Silveira Vasconcelos Da, 2024. "Benefit-of-the-Doubt in the Spatial Analysis of Child Well-Being in European Countries," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 17(4), pages 1851-1870, August.
    9. Matheus Pereira Libório & Oseias da Silva Martinuci & Alexei Manso Correa Machado & Renata de Mello Lyrio & Patrícia Bernardes, 2022. "Time–Space Analysis of Multidimensional Phenomena: A Composite Indicator of Social Exclusion Through k-Means," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 159(2), pages 569-591, January.
    10. Brad Bottoms & Julie Arbit & Earl Lewis & Alford Young Jr, 2024. "Towards urban place-based resilience modeling: Mixed methods for a flood resilience assessment index," Environment and Planning B, , vol. 51(7), pages 1563-1580, September.
    11. Matheus Pereira Libório & Lívia Maria Leite Silva & Petr Iakovlevitch Ekel & Letícia Ribeiro Figueiredo & Patrícia Bernardes, 2022. "Consensus-Based Sub-Indicator Weighting Approach: Constructing Composite Indicators Compatible with Expert Opinion," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(3), pages 1073-1099, December.
    12. Mammadli, Rashad & Gigliarano, Chiara, 2024. "Does pro-environmental consumption contribute to subjective well-being? Empirical evidence from Italy," Socio-Economic Planning Sciences, Elsevier, vol. 95(C).
    13. Kuebart, Andreas & Stabler, Martin, 2023. "Waves in time, but not in space – an analysis of pandemic severity of COVID-19 in Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 47.

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