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Settings weights in multidimensional indices of well-being and deprivation

Abstract:

Multidimensional indices of well-being and deprivation have become increasingly popular, both in the theoretical and in the policy-oriented literature. By now, there is a wide range of methods to construct multidimensional well-being indices, differing in the way they transform, aggregate and weight the relevant dimensions. We present a unifying framework that allows us to compare the different approaches and to analyze the specific role of the dimension weights in each of them. Through interaction with choices about the transformation and aggregation of the different attributes, the weights play a crucial role in determining the trade-offs between the dimensions. Setting weights thus reflects important value judgements about the exact notion of well-being. We survey six methods to set weights usually employed in the literature. Three principles guides our assessments: first, weights should be made explicit and clear so that they can be subject to public scrutiny; second, weights should be set taking into consideration their role determining the trade-offs between dimensions; finally, weights should respect people’s preferences about these dimensions.

Publication status:
Published
Peer review status:
Reviewed (other)

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Institution:
University of Oxford
Division:
SSD
Department:
Economics
Research group:
Oxford Poverty and Human Development Initiative (OPHI)
Role:
Author


Publisher:
Oxford Poverty & Human Development Initiative (OPHI)
Series:
OPHI working paper
Publication date:
2008-01-01
Edition:
Publisher's version
ISSN:
2040-8188
Paper number:
18
ISBN:
9781907194078


Language:
English
Keywords:
UUID:
uuid:11bde348-9144-49e9-8c46-d09c3e10700d
Local pid:
ora:9406
Deposit date:
2014-11-27
ARK identifier:

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