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The definition and construction of a composite indicator (CI) is a challenging operation. Here we propose a new technique to construct composite indicators that is based on the Box-Cox transformation. To illustrate our idea, a simulation study has been carried out. Results show that it is possible to find a parameter from the Box-Cox transformation that, in the least squares sense, ensures normality and, as a consequence, it opens new roads for researches in the field of the construction of CIs.

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A New Point of View in the Construction of Composite Indicators: A Simulation Illustration

  • 会议论文

  • 发表日期：

    2025年

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  • Mariateresa Ciommi,
  • Chiara Gigliarano,
  • Francesca Mariani,
  • Maria Cristina Recchioni

摘要

The definition and construction of a composite indicator (CI) is a challenging operation. Here we propose a new technique to construct composite indicators that is based on the Box-Cox transformation. To illustrate our idea, a simulation study has been carried out. Results show that it is possible to find a parameter from the Box-Cox transformation that, in the least squares sense, ensures normality and, as a consequence, it opens new roads for researches in the field of the construction of CIs.