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Composite indices: rank robustness, statistical association, and redundancy

Version 2 2024-06-13, 08:33
Version 1 2014-10-28, 10:03
journal contribution
posted on 2024-06-13, 08:33 authored by J Foster, M McGillivray, S Seth
This article evaluates the robustness of rankings obtained from composite indices that combine information from two or more components via a weighted sum. It examines the empirical prevalence of robust comparisons using the method proposed by Foster et al. (2010). Indices examined are the Human Development Index (HDI), the Index of Economic Freedom (IEF), and the Environmental Performance Index (EPI). Key theoretical results demonstrate links between the prevalence of robust comparisons, Kendall’s tau rank correlation coefficient, and statistical association across components. Implications for redundancy among index components are also examined.

History

Journal

Econometric reviews

Volume

32

Season

Special issue : Robustness in multidimensional wellbeing analysis

Pagination

35-56

Location

London, Eng.

ISSN

0747-4938

eISSN

1532-4168

Language

eng

Notes

This paper was also presented as a technical report as : Composite indices : rank robustness, statistical association and redundancy, Alfred Deakin Research Institute, Geelong, Vic., 2011.

Publication classification

C1 Refereed article in a scholarly journal

Copyright notice

2013, Taylor & Francis

Issue

1

Publisher

Taylor & Francis