Developing Composite Indicators for Policy-Making: A Brief Methodological Framework and Considerations

This summary paper sketches upon the extent to which composite indicators (CIs) can effectively underpin the development of data-driven narratives for policy consumption. An attempt is made to summarise the controversy surrounding the use of CIs with practical and applied examples from the recent literature. We then discuss briefly the main steps for developing a CI. We argue in favour of multiple simulations to represent different scenarios in the construction of a CI prior to drawing recommendations for policy-making. Finally, we try to establish a link between the analytic use of CIs and the development of a robust culture of evaluation of policies based on information.

SAISANA Michaela; 

2008-11-24

Institute of Transport Economics

JRC47042