Abstract
We draw on the recommendations of the Stiglitz Report to select a set of economic and social variables that can be used to
make cross-country comparisons of wider well-being. Using data for the EU-15 countries for 1999 and 2005, we show how three-way
analysis can be used to extract synthetic information from a large data set to determine the main latent explanatory factors.
In our case, we identify one dominant factor that we term the development profile, which is positively associated with the
level of education outputs, technological progress and female labour market participation and negatively associated with the
level of pollution. We rank the countries according to this factor and compare these rankings with simpler GDP comparisons
and find that the two rankings are only weakly correlated.
make cross-country comparisons of wider well-being. Using data for the EU-15 countries for 1999 and 2005, we show how three-way
analysis can be used to extract synthetic information from a large data set to determine the main latent explanatory factors.
In our case, we identify one dominant factor that we term the development profile, which is positively associated with the
level of education outputs, technological progress and female labour market participation and negatively associated with the
level of pollution. We rank the countries according to this factor and compare these rankings with simpler GDP comparisons
and find that the two rankings are only weakly correlated.
- Content Type Journal Article
- Pages 1-24
- DOI 10.1007/s11205-011-9986-3
- Authors
- G. Madonia, Department of International Business and Economics, Old Royal Naval College, University of Greenwich, Park Row, Greenwich, London, SE10 9LS UK
- M. F. Cracolici, Dipartimento di Scienze Statistiche e Matematiche, University of Palermo, Viale delle Scienze, Ed. 17, 90128 Palermo, Italy
- M. Cuffaro, Dipartimento di Scienze Economiche, Aziendali e Finanziarie, University of Palermo, Viale delle Scienze Ed. 17, 90128 Palermo, Italy
- Journal Social Indicators Research
- Online ISSN 1573-0921
- Print ISSN 0303-8300