In the Input-Output Analytic framework, production (X) is related to final demand (C) through the B [while B= INV(I-A), where A is the technical coefficients matrix and INV(.) means inverted (.)], such that X=BC. Generally, the elements of A and C are considered to be non-stochastic and...

The paper is an attempt to evaluate the efficiency of Pena's DP-2 method over a host of methods used to make composite indices. To undertake this exercise, variables and data used and methodology adopted in Human Development Report 2011 are employed along with nine other methodologies employed...

This paper uses mixed combinatorial-cum-real particle swarm method to obtain a heuristically optimal order in which the constituent variables can be arranged so as to yield some generalized maximum entropy synthetic indicators that represent the constituent variables in the best...

Pena's method of construction of a synthetic indicator is very sensitive to the order in which the constituent variables (whose linear aggregation yields the synthetic indicator) are arranged. Due to this, Pena's method can at present give only an arbitrary synthetic indicator whose...

In this paper we construct thirteen different types of composite indices by linear combination of indicator variables (with and without outliers/data corruption). Weights of different indicator variables are obtained by maximization of the sum of squared (and, alternatively, absolute)...

Multicollinearity in empirical data violates the assumption of independence among the explanatory variables in a linear regression model and by inflating the standard error of estimates of the estimated regression coefficients leads to failure in rejecting a false null hypothesis of...

This paper proposes a method to construct composite index, which is a linear combination of several variables, by deriving weights on the criterion of Shapley value (from cooperative game theory) that a constituent variable has in making the composite index. In practice it is found oftentimes...

This paper aims at locating the practice of micro-credit system into a larger theoretical canvas of economic theory and philosophy. A systems theoretic approach has been adopted. Emergence of the ‘excluded' class has been explained with the help of the theory of feedback. Individuals have been...