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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

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  • Greco, Salvatore
  • Ishizaka, Alessio
  • Resce, Giuliano
  • Torrisi, Gianpiero

Abstract

The multidimensional measures of well-being, such as the OECD Better Life Index (BLI), are receiving considerable attention. We introduce a composite index that, departing from the current practice, accounts for societal relative appreciation for the considered dimensions. We apply our methodology to the BLI using the data on preferences gathered from the OECD website. Our analysis signals pervasive differences in the country-level performances that cannot be compensated through differences in local preferences. Furthermore, individual preferences exacerbate multidimensional inequality between countries. Hence, we conjecture that better performing countries offer a policy mix better tailored to fit citizens’ preferences.

Suggested Citation

  • 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.
    • Handle: RePEc:pra:mprapa:82718
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    Cited by:

    1. Greco, Salvatore & Ishizaka, Alessio & Tasiou, Menelaos & Torrisi, Gianpiero, 2019. "The Ordinal Input for Cardinal Output Approach of Non-compensatory Composite Indicators: The PROMETHEE Scoring Method," MPRA Paper 95816, University Library of Munich, Germany.
    2. Greco, Salvatore & Ishizaka, Alessio & Tasiou, Menelaos & Torrisi, Gianpiero, 2021. "The ordinal input for cardinal output approach of non-compensatory composite indicators: the PROMETHEE scoring method," European Journal of Operational Research, Elsevier, vol. 288(1), pages 225-246.

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    More about this item

    Keywords

    Well-Being; Better Life Index; Composite Index; Local Preferences; Stochastic Multi-Objective Acceptability Analysis;
    All these keywords.

    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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