Transcription of Chapter 6: composite socio economic indicators
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Chapter 6: composite socio economic indicators
1 Chapter 6: composite socio - economic indicators Contents Introduction .. 1 Arguments for and against composite socio - economic indicators .. 3 Steps for constructing composite socio - economic indicators .. 5 Using a conceptual model .. 5 Selecting domains and variables .. 6 Data treatment .. 9 Multivariate analysis .. 9 Normalisation of data .. 9 Weighting and aggregation .. 9 Robustness and sensitivity .. 11 Index validity and links to other variables .. 11 Dissemination issues .. 12 Conclusions/recommendations .. 16 References .. 18 Introduction There is a growing attention for non- economic indicators , whether it be social, socio - economic or environmental indicators . To a great extent this rise in attention is a result of the report on measuring economic performance and social progress (Stiglitz, Sen and Fitoussi 2009), although the tradition of social indicators dates further back (cf.)
Typical of composite indicators, and thus also of composite socio-economic indicators, is that they measure complex, multidimensional phenomena which cannot be measured directly. One of the most widely used composite indexes is the Human Development Index (HDI) of …
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