Sensitivity Analysis of Composite Indicators through Mixed Model Anova

Cristina Davino, Rosaria
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Cristina Davino, Rosaria: University of Macerata

No 32-2011, Working Papers from Macerata University, Department of Studies on Economic Development (DiSSE)

Abstract: The paper proposes a new approach for analysing the stability of Composite Indicators. Starting from the consideration that different subjective choices occur in their construction, the paper emphasizes the importance of investigating the possible alternatives in order to have a clear and objective picture of the phenomenon under investigation. Methods dealing with Composite Indicator stability are known in literature as Sensitivity Analysis. In such a framework, the paper presents a new approach based on a combination of explorative and confirmative analysis aiming to investigate the impact of the different subjective choices on the Composite Indicator variability and the related individual differences among the statistical units as well.

Keywords: sensitivity analysis; composite indicators; analysis of variance; principal component analysis (search for similar items in EconPapers)
JEL-codes: C38 C52 C63 (search for similar items in EconPapers)
Date: 2011-02, Revised 2011-03
New Economics Papers: this item is included in nep-ecm and nep-mic
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Citations: View citations in EconPapers (2)

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