ON THE METHOD OF CONSTRUCTING DYNAMICALLY COMPARABLE COMPOSITE INDICES
D.A. Borzykh, K.K. Furmanov, I.K. Chernysheva
National Research University Higher School of Economics, Str. Myasnitskaya, 20, Moscow, 101000, Russia
Keywords: композитный индекс, динамическая устойчивость, динамическая сопоставимость, метод главных компонент, композитный индекс здоровья населения, composite index, dynamical stability, dynamical comparability, method of principal components, composite index of population health
Abstract
This paper proposes a new method for constructing dynamic composite indices that has two important properties, such as nonnegative weights and dynamic comparability. The method is applied to construct a composite index of population health, as an example. The current method of composite indices’ construction is compared to existing approaches, namely the principal component method and the technique suggested by D. Borzykh in 2016. In contrast to the latter, the new approach meets both requirements, i.e. dynamic comparability and nonnegativity of weights. Thus, it is shown that the method suggested in this paper has the best properties.
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