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Disentangling Heterogeneity Gaps and Pure Performance Differences in Composite Indexes Over Time: The Case of the Europe 2020 Strategy

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  • Barnabé Walheer

    (Université de Liège)

Abstract

Composite indexes have been widely used in different contexts to evaluate the performances of entities. The popularity of these indexes come mainly from their ease of use, interpretation and computation. In practice, heterogeneity could be present in the performance evaluation exercise due to differences between entities. For example, they could differ with respect to their ownership, geographical localization, economic infrastructure, resource endowments, social environment, and so on. As a result, composite indexes fail to capture the performance differences, as they are biased by the presence of heterogeneity. In this paper, we suggest a simple procedure to disentangle the heterogeneity gaps and pure performance differences in the composite indexes over time. We apply our procedure to the case of the Europe 2020 strategy by distinguishing between old and new European members.

Suggested Citation

  • Barnabé Walheer, 2019. "Disentangling Heterogeneity Gaps and Pure Performance Differences in Composite Indexes Over Time: The Case of the Europe 2020 Strategy," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(1), pages 25-45, May.
    • Handle: RePEc:spr:soinre:v:143:y:2019:i:1:d:10.1007_s11205-018-1974-4
    DOI: 10.1007/s11205-018-1974-4
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    Cited by:

    1. Charlotte Wüst & Nicky Rogge, 2022. "How is the European Union progressing towards its Europe 2020 targets? A benefit-of-the-doubt window analysis," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 49(2), pages 405-438, May.
    2. Fan Liu & Barnabé Walheer, 2022. "Financial inclusion, financial technology, and economic development: a composite index approach," Empirical Economics, Springer, vol. 63(3), pages 1457-1487, September.
    3. Walheer, Barnabé, 2024. "A sequential benefit-of-the-doubt composite indicator," European Journal of Operational Research, Elsevier, vol. 316(1), pages 228-239.
    4. Walheer, Barnabé, 2023. "Meta-frontier and technology switchers: A nonparametric approach," European Journal of Operational Research, Elsevier, vol. 305(1), pages 463-474.
    5. Emília Duľová Spišáková & Barbora Gontkovičová & Emil Spišák, 2021. "Assessment of Research and Development Financing Based on the Strategies in EU: Case of Sweden, Slovakia and Romania," Sustainability, MDPI, vol. 13(15), pages 1-18, August.
    6. Panagiotis Artelaris, 2022. "A development index for the Greek regions," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(3), pages 1261-1281, June.

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