Composite indicators simplify the representation of complex realities without losing generality, attracting the attention of researchers from various fields, including operational research. Despite their advantages, many composite indicators fail with regard to quality and reliability, e.g., governance composite indicators. This study proposes an innovative quality- reliability approach for constructing composite indicators, which can be applied to represent the multidimensional governance of the 20 largest economies in the world. The composite indicator obtained showed high explanatory power (correlation of 0.85 with GDP per capita), absence of countries with discrepant scores (0% bivariate outliers), high informational power (retention of 90% of input data), and high discriminant power (well-distributed scores). Finally, the countries' uncertainty of 0.20 positions in the ranking guarantees that the composite indicator has a stable internal structure, and the results are reliable and valuable for guiding investors and public managers on making investments and/or prioritizing institutional reforms.
New governance composite indicator: a quality and reliability-based approach / Santos, Angélica Cidália Gouveia dos; Fusco, Elisa; Silva, Iara Sibele; Ekel, Petr Iakovlevitch; D'Angelo, Marcos Flávio Silveira Vasconcelos; Coimbra, André Gomes; Liborio, Matheus. - ELETTRONICO. - Vol 57, 2025:(2025), pp. 1-13. ( 57th edition of the Brazilian Symposium on Operations Research (SBPO) Gramado, Rio Grande do Sul 5-9 October 2025) [10.59254/sbpo-2025-212680].
New governance composite indicator: a quality and reliability-based approach
Fusco, Elisa;
2025
Abstract
Composite indicators simplify the representation of complex realities without losing generality, attracting the attention of researchers from various fields, including operational research. Despite their advantages, many composite indicators fail with regard to quality and reliability, e.g., governance composite indicators. This study proposes an innovative quality- reliability approach for constructing composite indicators, which can be applied to represent the multidimensional governance of the 20 largest economies in the world. The composite indicator obtained showed high explanatory power (correlation of 0.85 with GDP per capita), absence of countries with discrepant scores (0% bivariate outliers), high informational power (retention of 90% of input data), and high discriminant power (well-distributed scores). Finally, the countries' uncertainty of 0.20 positions in the ranking guarantees that the composite indicator has a stable internal structure, and the results are reliable and valuable for guiding investors and public managers on making investments and/or prioritizing institutional reforms.I documenti in FLORE sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.



