Multi-indicator comprehensive evaluation: reflection on methodology

Dong Qiu; Tingyi Liu; Dong Qiu; Tingyi Liu

doi:10.3934/DSFE.2021016

Data Science in Finance and Economics

2021, Volume 1, Issue 4: 298-312. doi: 10.3934/DSFE.2021016

Previous Article Next Article

Theory article

Multi-indicator comprehensive evaluation: reflection on methodology

Dong Qiu ¹,
Tingyi Liu ^{2
,
,}

1.
Jiangxi University of Finance and Economics, Nanchang, 330013, China
2.
Economics and Management School of Wuhan University, Wuhan, 430072, China

Received: 22 October 2021 Accepted: 09 December 2021 Published: 15 December 2021
JEL Codes: B4

The number and field of researches on the application of Multi-Indicator Comprehensive Evaluation (MICE) are increasing. It is important to reflect on the understanding of the MICE method systematically and the issues implied behind it. This paper compares the core concepts and methodological elements of the three papers that systematically study the MICE method. It is found that the views of the three papers on the core issue are consistent and mutually supportive, but there are differences in the step division and sequence of the evaluation content. In addition, this paper considers the historical status of the MICE and holds that the key to solving the quality of weight lies in the "equivalent conversion" problem in the MICE. Taking the Human Development Index as an example, this paper illustrates the absoluteness of the "equivalent conversion" relationship. In addition, there are multiple processing methods for the MICE from the spatial dimension and multiple evaluation results accordingly, therefore, the results of the MICE need to be used carefully. Finally, based on the systematic summary and reflection of the MICE method, three suggestions are given for the application of the MICE method.
- Multi-Indicator Comprehensive Evaluation,
- methodological elements,
- statistical evaluation,
- equivalent conversion,
- spatial interpretation
Citation: Dong Qiu, Tingyi Liu. Multi-indicator comprehensive evaluation: reflection on methodology[J]. Data Science in Finance and Economics, 2021, 1(4): 298-312. doi: 10.3934/DSFE.2021016

Related Papers:

Abstract

The number and field of researches on the application of Multi-Indicator Comprehensive Evaluation (MICE) are increasing. It is important to reflect on the understanding of the MICE method systematically and the issues implied behind it. This paper compares the core concepts and methodological elements of the three papers that systematically study the MICE method. It is found that the views of the three papers on the core issue are consistent and mutually supportive, but there are differences in the step division and sequence of the evaluation content. In addition, this paper considers the historical status of the MICE and holds that the key to solving the quality of weight lies in the "equivalent conversion" problem in the MICE. Taking the Human Development Index as an example, this paper illustrates the absoluteness of the "equivalent conversion" relationship. In addition, there are multiple processing methods for the MICE from the spatial dimension and multiple evaluation results accordingly, therefore, the results of the MICE need to be used carefully. Finally, based on the systematic summary and reflection of the MICE method, three suggestions are given for the application of the MICE method.

References

[1]	Bandura R (2005) Measuring country performance and state behavior: A survey of composite indices. Technical report, Office of Development Studies, United Nations Development Programme (UNDP), New York.
[2]	Bandura R (2011) Composite indicators and rankings: Inventory 2011. Technical report, Office of Development Studies, United Nations Development Programme (UNDP), New York.
[3]	Greco S, Ishizaka A, Tasiou M, et al. (2019) On the Methodological Framework of Composite Indices: A Review of the Issues of Weighting, Aggregation, and Robustness. Soc Indic Res 141: 61-94. doi: 10.1007/s11205-017-1832-9
[4]	Mazziotta M, Pareto A (2020) Composite Indices Construction: The Performance Interval Approach. Soc Indic Res.
[5]	Nardo M, Saisana M, Saltelli A, et al. (2005) Handbook on constructing composite indicators. OECD Statistics Working Papers. Available from: https://www.oecd-ilibrary.org/economics/handbook-on-constructing-composite-indicators_533411815016.
[6]	Qiu D, Li D (2021) Comments on the "SSF Report" from the perspective of economic statistics. Green Finance 3: 403-463. doi: 10.3934/GF.2021020
[7]	Rosen R (1991) Life itself: A comprehensive inquiry into the nature, origin, and fabrication of life. New York: Columbia University Press.
[8]	Saisana M, Tarantola S (2002) State-of-the-art Report on Current Methodologies and Practices for Composite Indicator Development. In Joint Research Centre. Italy: European Commission.
[9]	United Nations Development Programme (UNDP) (2010) Human Development Report 2010: The Real Wealth of Nations-Pathways to Human Development. New York.
[10]	Qiu D (1991) The system of the comprehensive evaluation method of multi-indicator. China Statistical Publishing Press.
[11]	Qiu D (1988) The system of the multi-indicator comprehensive evaluation. Res Financ Econ Iss 09: 49-55.
[12]	Su WH (2001) The research on theory and method of research on theory and method. Chinese Price Publishing House.
[13]	OECD (2008) Handbook on Constructing Composite Indicators-methodology and Use Guide.
[14]	Auyang SY (1998) Foundations of Complex-system Theories. In: Economics, Evolutionary Biology, and Statistical Physics.
[15]	Kagan J (2009) The Three Cultures: Natural Sciences, Social Sciences and the Humanities in the 21st Century. New York: Cambridge University Press.
[16]	Chang CL (2011) The relativism and beyond on the philosophy of science. Shandong University Press.
[17]	Su WH (2012) The review and understanding of the comprehensive evaluation technology of multi-indicator and application research in China. Stat Res 250: 98-107.
[18]	Qiu D (2012) The Boundary Antinomy of Macro-measurement and It's Significance. Stat Res 250: 83-90.

Reader Comments

your name:*

Email:*
© 2021 the Author(s), licensee AIMS Press. This is an open access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0)