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Statistics, Knowledge and Policy: Key Indicators to Inform Decision Making

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In this paper we first present an example of how Composite Indicators naturally emerge in a context where country performance is being benchmarked, we discuss some salient aspect of the Composite Indicators Controversy, pitting Aggregators and Non-Aggregators against one another, and showing Pros and Cons to the use of composite indicators. We offer next some examples of JRC experience in the quest for a methodology for ensuring quality of composite indicators including the use of uncertainty and sensitivity analysis. Finally, we analyse two crucial issues in composite indicator building such as correlation and compensability, which have not received the necessary attention.
2005-12-13
JRC31394
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