Composite Index Construction with Expert Opinion

نویسندگان

چکیده

Composite index is a powerful and popularly used tool in providing an overall measure of subject by summarizing group measurements (component indices) different aspects the subject. It widely economics, finance, policy evaluation, performance ranking, many other fields. Effective construction composite has been studied extensively. The most approach to use linear combination component indices, where weights are determined optimizing objective function. To maximize variation resulting index, can be obtained through principal analysis. In this article, we propose incorporate expert opinions into index. noted that opinion often provides useful information assessing which indices more important for We consider case experts have consulted, each set importance scores along with confidence reflects expert’s own his/her assessment. addition, constructor also provide assessment expertise level expert. combinations construct maximizing sum negative weighted squares deviation between experts’ scores. A data-driven find optimal balance two sources information. Theoretical properties procedure investigated. Simulation examples economic application on constructing science technology development carried out illustrate proposed method.

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ژورنال

عنوان ژورنال: Journal of Business & Economic Statistics

سال: 2021

ISSN: ['1537-2707', '0735-0015']

DOI: https://doi.org/10.1080/07350015.2021.2000418