omposite Indicators of Quality of Relational Life: Robustness and Sensitivity Analysis
Luca Stanca, Stefano Tarantola
Last modified: 2009-06-06
Abstract
A new method has been recently proposed for the measurement of the quality of relational life (QRL). Implicit valuations estimated from micro-econometric life satisfaction equations are used to weigh and aggregate scores on several dimensions of relational life. This approach has been applied to compare QRL across countries worldwide. An important issue in country benchmarking is the assessment of variability of the composite scores. This paper presents a robustness analysis of the composite QRL country scores by propagating the different sources of uncertainty in order to identify possible groups of countries of similar performance. Then, through sensitivity analysis, we identify the uncertainties that mostly contribute to the overall variability of the QRL composite indicator. This information can be of help to increase the quality of the QRL indicators.
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