IDEAS home Printed from https://ideas.repec.org/a/spr/soinre/v131y2017i2d10.1007_s11205-016-1263-z.html
   My bibliography  Save this article

Highlighting Methodological Limitations in the Steps of Composite Indicators Construction

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11205-016-1263-z
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11205-016-1263-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Blancard, Stéphane & Hoarau, Jean-François, 2013. "A new sustainable human development indicator for small island developing states: A reappraisal from data envelopment analysis," Economic Modelling, Elsevier, vol. 30(C), pages 623-635.
    2. Saaty, Thomas L., 1990. "How to make a decision: The analytic hierarchy process," European Journal of Operational Research, Elsevier, vol. 48(1), pages 9-26, September.
    3. Raphaël Chiappini, 2012. "Les indices composites sont-ils de bonnes mesures de la compétitivité des pays ?," Larefi Working Papers 1205, Larefi, Université Bordeaux 4.
    4. Chuluun Togtokh, 2011. "Time to stop celebrating the polluters," Nature, Nature, vol. 479(7373), pages 269-269, November.
    5. Jeni Klugman & Francisco Rodríguez & Hyung-Jin Choi, 2011. "The HDI 2010: new controversies, old critiques," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(2), pages 249-288, June.
    6. Milorad Kovacevic & Clara García Aguña, 2010. "Uncertainty and Sensitivity Analysis of the Human Development Index," Human Development Research Papers (2009 to present) HDRP-2010-47, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    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. 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.
    2. 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.
    3. 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.
    4. Karagiannis, Giannis & Ravanos, Panagiotis, 2023. "A composite indicator of social inclusion for EU based on the inverted BoD model," Socio-Economic Planning Sciences, Elsevier, vol. 88(C).
    5. 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.
    6. 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.
    7. 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).
    8. Renaud Gaucher & Issaka Dialga & Coralie Vennin, 2022. "The indicator of a happy, long and sustainable life," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 159(1), pages 55-75, January.
    9. Panagiotis Artelaris, 2022. "A development index for the Greek regions," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(3), pages 1261-1281, June.
    10. 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.
    11. 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).
    12. 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.
    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.

    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. 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.
    2. Vincenzo Marinello & Chiara Di Puma, 2020. "The Human Development Index: a critical evaluation and a new proposal," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 74(2), pages 29-38, April-Jun.
    3. Giménez, Víctor & Ayvar-Campos, Francisco Javier & Navarro-Chávez, José César Lenin, 2017. "Efficiency in the generation of social welfare in Mexico: A proposal in the presence of bad outputs," Omega, Elsevier, vol. 69(C), pages 43-52.
    4. Wang, Hanjie & Feil, Jan-Henning & Yu, Xiaohua, 2023. "Let the data speak about the cut-off values for multidimensional index: Classification of human development index with machine learning," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).
    5. Debraj Kalyan Roka, 2019. "GDP Growth and Income Paradoxical Relation to Happiness in China and South Asian countries," International Journal of Science and Business, IJSAB International, vol. 3(4), pages 61-85.
    6. Panagiotis Ravanos & Giannis Karagiannis, 2021. "A VEA Benefit-of-the-Doubt Model for the HDI," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(1), pages 27-46, May.
    7. Flavio Martins & Maria Fatima Almeida & Rodrigo Calili & Agatha Oliveira, 2020. "Design Thinking Applied to Smart Home Projects: A User-Centric and Sustainable Perspective," Sustainability, MDPI, vol. 12(23), pages 1-27, December.
    8. Jochen Wulf, 2020. "Development of an AHP hierarchy for managing omnichannel capabilities: a design science research approach," Business Research, Springer;German Academic Association for Business Research, vol. 13(1), pages 39-68, April.
    9. Wu, Zhangsheng & Li, Yue & Wang, Rong & Xu, Xu & Ren, Dongyang & Huang, Quanzhong & Xiong, Yunwu & Huang, Guanhua, 2023. "Evaluation of irrigation water saving and salinity control practices of maize and sunflower in the upper Yellow River basin with an agro-hydrological model based method," Agricultural Water Management, Elsevier, vol. 278(C).
    10. Roobavannan, M. & Kandasamy, J. & Pande, S. & Vigneswaran, S. & Sivapalan, M., 2020. "Sustainability of agricultural basin development under uncertain future climate and economic conditions: A socio-hydrological analysis," Ecological Economics, Elsevier, vol. 174(C).
    11. D’Inverno, Giovanna & Carosi, Laura & Romano, Giulia & Guerrini, Andrea, 2018. "Water pollution in wastewater treatment plants: An efficiency analysis with undesirable output," European Journal of Operational Research, Elsevier, vol. 269(1), pages 24-34.
    12. Rui Manuel de Sousa Fragoso & Carlos Alberto Falcão Marques, 2012. "Integrated Water Management Using Feasible Goals Method and Interactive Decision Maps: The Case of Odivelas Irrigation," CEFAGE-UE Working Papers 2012_07, University of Evora, CEFAGE-UE (Portugal).
    13. Nermin Kişi, 2019. "A Strategic Approach to Sustainable Tourism Development Using the A’WOT Hybrid Method: A Case Study of Zonguldak, Turkey," Sustainability, MDPI, vol. 11(4), pages 1-19, February.
    14. Christoph Dörffel & Sebastian Schuhmann, 2020. "What is Inclusive Development? Introducing the Multidimensional Inclusiveness Index," Jena Economics Research Papers 2020-015, Friedrich-Schiller-University Jena.
    15. Eric Tate, 2012. "Social vulnerability indices: a comparative assessment using uncertainty and sensitivity analysis," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 63(2), pages 325-347, September.
    16. Pathiraja, Erandathie & Griffith, Garry & Farquharson, Robert & Faggia, Rob, 2019. "The Cost of Climate Change to Agricultural Industries: Coconuts in Sri Lanka," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 10(05), December.
    17. Ayodele, T.R. & Ogunjuyigbe, A.S.O. & Odigie, O. & Munda, J.L., 2018. "A multi-criteria GIS based model for wind farm site selection using interval type-2 fuzzy analytic hierarchy process: The case study of Nigeria," Applied Energy, Elsevier, vol. 228(C), pages 1853-1869.
    18. V. Srinivasan & G. Shainesh & Anand K. Sharma, 2015. "An approach to prioritize customer-based, cost-effective service enhancements," The Service Industries Journal, Taylor & Francis Journals, vol. 35(14), pages 747-762, October.
    19. Marlous Milliano & Ilze Plavgo, 2018. "Analysing Multidimensional Child Poverty in Sub-Saharan Africa: Findings Using an International Comparative Approach," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 11(3), pages 805-833, June.
    20. Patricija Bajec & Danijela Tuljak-Suban, 2019. "An Integrated Analytic Hierarchy Process—Slack Based Measure-Data Envelopment Analysis Model for Evaluating the Efficiency of Logistics Service Providers Considering Undesirable Performance Criteria," Sustainability, MDPI, vol. 11(8), pages 1-18, April.

    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:spr:soinre:v:131:y:2017:i:2:d:10.1007_s11205-016-1263-z. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.