Compind (version 3.2)

ci_bod: Benefit of the Doubt approach (BoD)

Description

Benefit of the Doubt approach (BoD) is the application of Data Envelopment Analysis (DEA) to the field of composite indicators. It was originally proposed by Melyn and Moesen (1991) to evaluate macroeconomic performance.

Usage

ci_bod(x,indic_col)

Value

An object of class "CI". This is a list containing the following elements:

ci_bod_est

Composite indicator estimated values.

ci_method

Method used; for this function ci_method="bod".

ci_bod_weights

Raw weights assigned to the simple indicators (Dual values - prices - in the dual DEA formulation).

Arguments

x

A data.frame containing simple indicators.

indic_col

A numeric list indicating the positions of the simple indicators.

Author

Vidoli F.

References

OECD (2008) "Handbook on constructing composite indicators: methodology and user guide".

Melyn W. and Moesen W.W. (1991) "Towards a synthetic indicator of macroeconomic performance: unequal weighting when limited information is available", Public Economic research Paper 17, CES, KU Leuven.

Witte, K. D., Rogge, N. (2009) "Accounting for exogenous influences in a benevolent performance evaluation of teachers". Tech. rept. Working Paper Series ces0913, Katholieke Universiteit Leuven, Centrum voor Economische Studien.

See Also

ci_bod_dir,ci_rbod

Examples

i1 <- seq(0.3, 0.5, len = 100) - rnorm (100, 0.2, 0.03)
i2 <- seq(0.3, 1, len = 100)   - rnorm (100, 0.2, 0.03)
Indic = data.frame(i1, i2)
CI = ci_bod(Indic)
 # validating BoD score
w = CI$ci_bod_weights
Indic[,1]*w[,1] + Indic[,2]*w[,2]


data(EU_NUTS1)
data_norm = normalise_ci(EU_NUTS1,c(2:3),polarity = c("POS","POS"), method=2)
CI = ci_bod(data_norm$ci_norm,c(1:2))