1442. Overcoming the Limitations of Human Development Index - A Choquet Integral Approach to Account for Inter-dependencies
Invited abstract in session TB-8: MCDA and Composite Indicators: Issues, advances and applications, stream Multiple Criteria Decision Aiding.
Tuesday, 10:30-12:00Room: Clarendon SR 2.08
Authors (first author is the speaker)
| 1. | Faran Ahmed
|
| Royal Docks School of Business and Law, University of East London | |
| 2. | Sajid Siraj
|
| Leeds University Business School, University of Leeds | |
| 3. | Mujtaba Agha
|
| Cardiff School of Management, Cardiff Metropolitan University |
Abstract
Multiple Criteria Decision Making (MCDM) methods provide robust frameworks for evaluating complex problems involving several dimensions. Assigning weights and the subsequent aggregation of these dimensions into a single representative composite score significantly impacts the outcome of the overall assessment. Traditional aggregation methods often assume that dimensions are independent, overlooking potential interactions among them. In several applications, this simplification can lead to inaccurate representative composite scores, as it fails to account for synergies or trade-offs between dimensions while synthesizing information across dimensions. This study proposes a novel framework to calculate composite scores incorporating multi-linear regression to estimate weights of the individual dimensions and the Choquet Integral to account for interactions among the dimensions included in the evaluation. The proposed framework is applied in the context of human development, where such methods offer a structured approach to aggregating diverse indicators into a single composite index. The geometric mean method currently used to calculate the Human Development Index (HDI) fails to account for the inter-dependencies between its core dimensions of health, education, and income. The proposed methodology addresses this limitation and demonstrates a superior ability to reflect more reliable human development by incorporating the inter-dependencies among its core dimensions.
Keywords
- Decision Support Systems
- Multi-Objective Decision Making
- OR in Development
Status: accepted
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