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Stochastic Multiattribute Acceptability Analysis: an application to the ranking of Italian regions

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  • Greco, Salvatore
  • Ishizaka, Alessio
  • Matarazzo, Benedetto
  • Torrisi, Gianpiero

Abstract

We consider the issue of ranking regions with respect to a range of economic and social variables. Departing from the current practice of aggregating different dimensions via an arithmetic mean, we instead use Stochastic Multiattribute Acceptability Analysis (SMAA). SMAA takes account of the “whole space” of weights for the considered dimensions. Thus, rather than considering an average person giving equal or fixed weights to all dimensions, SMAA explores how potential differences in individual preferences affect the outcome. In this sense, in contrast to the purported objectivity of the many rankings supplied by economic institutions and mass media, this proposal enhances, simplifies and renders transparent the ranking exercise. The methodology is applied to the ranking of Italian regions, unveiling patterns of similarity and dissimilarity even within the same broad regional economy. Many of these findings are neglected within the extant literature addressing the “Mezzogiorno” problem.

Suggested Citation

  • Greco, Salvatore & Ishizaka, Alessio & Matarazzo, Benedetto & Torrisi, Gianpiero, 2015. "Stochastic Multiattribute Acceptability Analysis: an application to the ranking of Italian regions," MPRA Paper 68508, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:68508
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    References listed on IDEAS

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    Cited by:

    1. Greco, Salvatore & Ishizaka, Alessio & Tasiou, Menelaos & Torrisi, Gianpiero, 2018. "σ-µ efficiency analysis: A new methodology for evaluating units through composite indices," MPRA Paper 83569, University Library of Munich, Germany.
    2. Li-zhu Yue & Jia-wei Zhang & Yue Lv, 2024. "Pyramid-Shaped Indicators: Evaluating the Robustness of Scheme Comparisons Under Weight Uncertainty," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 174(2), pages 631-656, September.
    3. Greco, Salvatore & Ishizaka, Alessio & Resce, Giuliano & Torrisi, Gianpiero, 2017. "Is the Grass Always Greener on the Other Side of the fence? Composite Index of Well-Being Taking into Account the Local Relative Appreciations in Better Life Index," MPRA Paper 82718, University Library of Munich, Germany.
    4. Raffaele Lagravinese & Paolo Liberati & Giuliano Resce, 2017. "Exploring health outcomes by stochastic multi-objective acceptability analysis: an application to Italian regions," Working Papers. Collection B: Regional and sectoral economics 1703, Universidade de Vigo, GEN - Governance and Economics research Network.
    5. Resce, Giuliano & Maynard, Diana, 2018. "What matters most to people around the world? Retrieving Better Life Index priorities on Twitter," Technological Forecasting and Social Change, Elsevier, vol. 137(C), pages 61-75.

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    More about this item

    Keywords

    Stochastic Multiattribute Acceptability Analysis; Regional Development; Multiple Criteria Ranking; Composite index.;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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