Composite indicators may be used to measure complex variables which are not directly measurable. The basic idea is to break down a latent variable into components which can be measured by means of simple (partial) indicators. The partial indicators are then combined to obtain a composite indicator. This paper discusses the development of composite indicators and their robustness. In particular, the comparison of different methods to construct composite indicators is addressed. A Monte Carlo simulation study is performed to evaluate the different methods.

A Comparison of Different Methods for the Construction of Composite Indicators

MAROZZI, Marco
2005-01-01

Abstract

Composite indicators may be used to measure complex variables which are not directly measurable. The basic idea is to break down a latent variable into components which can be measured by means of simple (partial) indicators. The partial indicators are then combined to obtain a composite indicator. This paper discusses the development of composite indicators and their robustness. In particular, the comparison of different methods to construct composite indicators is addressed. A Monte Carlo simulation study is performed to evaluate the different methods.
2005
Atti del IV Convegno Modelli Complessi e Metodi Computazionali Intensivi per la Stima e la Previsione
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10278/3664996
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