Performance Evaluation Based on the Robust Mahalanobis Distance and Multilevel Modelling Using Two New Strategies

S Hussain (), M. A. Mohamed, R. Holder, A. Almasri and Ghazi Shukur
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S Hussain: Division of Primary Care and General Practice, School of Medicine, University of Birmingham
M. A. Mohamed: Department of Public Health, University of Birmingham, UK
R. Holder: Division of Primary Care and General Practice, School of Medicine, University of Birmingham
A. Almasri: Department of Economics and Statistics, Karlstad University, Sweden

No 114, Working Paper Series in Economics and Institutions of Innovation from Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies

Abstract: In this paper we propose a general framework for performance evaluation of organisations and individuals over time using routinely collected performance variables or indicators. Such variables or indicators are often correlated over time, with missing observations, and often come from heavy tailed distributions shaped by outliers. Two double robust strategies are used for evaluation (ranking) of sampling units. Strategy 1 can handle missing data using residual maximum likelihood (RML) at stage two, while strategy two handle missing data at stage one. Strategy 2 has the advantage that overcomes the problem of multicollinearity. Strategy one requires independent indicators for the construction of the distances, where strategy two does not. Two different domain examples are used to illustrate the application of the two strategies. Example one considers performance monitoring of gynaecologists and example two considers the performance of industrial firms.

Keywords: Ranking indicators; performance; robust statistics; multilevel estimation; Mahalanobis distance (search for similar items in EconPapers)
JEL-codes: C40 C51 C52 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2008-02-26
New Economics Papers: this item is included in nep-cse and nep-ecm
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:cesisp:0114

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