A Complex MCDM Procedure for the Assessment of Economic Development of Units at Different Government Levels

Abstract

<jats:p>Studies on the economic development of government units are among the key challenges for authorities at different levels and an issue often investigated by economists. In spite of a considerable interest in the issue, there is no standard procedure for the assessment of economic development level of units at different levels of government (national, regional, sub-regional). This assessment needs a complex system of methods and techniques applicable to the various types of data. So, adequate methods must be used at each level. This paper proposes a complex procedure for a synthetic indicator. The units are assessed at different government levels. Each level (national, regional, and sub-regional) may be described with a particular type of variables. Set of data may include variables with a normal or near-normal distribution, a strong asymmetry or extreme values. The objective of this paper is to present the potential behind the application of a complex Multi-Criteria Decision Making (MCDM) procedure based on the tail selection method used in the Extreme Value Theory (EVT), i.e., Mean Excess Function (MEF) together with one of the most popular MCDM methods, namely the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS), to assess the economic development level of units at different government levels. MEF is helpful to identify extreme values of variables and limit their impact on the ranking of local administrative units (LAUs). TOPSIS is suitable in ranking units described with multidimensional data set. The study explored the use of two types of TOPSIS (classical and positional) depending on the type of variables. These approaches were used in the assessment of economic development level of LAUs at national, regional and sub-regional levels in Poland in 2017.</jats:p>

Fuzzy Stochastic Automation Model for Decision Support in the Process Inter-Budgetary Regulation

“…According to the authors A. Luczak and M. A. Just [1], "there is no standard procedure for solving this problem at different levels of management" [1]. Such an analysis requires the development of a system of methods, indicators and techniques that adequately assess the features of the evolution of territories at different levels of administrative structure.…”

“…Among the modern works devoted to the study of the economic development of state structures, the article by A. Luczak, M. A. Just [1] aroused the greatest interest. Authors A. Luczak and M. A.…”

“…Economic growth is the main goal of each state's economic policy, which is confirmed by a wide range of scientific publications on this topic [1][2][3][4]. Due to the fact that the level of development of the national economy is determined by the aggregate economic potential of its subnational territories, creating conditions for their economic growth is a key problem of any country's macroeconomic policy.…”

Intuitionistic Fuzzy TOPSIS as a Method for Assessing Socioeconomic Phenomena on the Basis of Survey Data

“…The spectrum of socioeconomic analyses to which the TOPSIS method is applied is very wide. Studies using the TOPSIS method have investigated human capital [ 9 ], the macroeconomic situation [ 10 ], international trade performance [ 11 ], smart development [ 12 ], innovation [ 13 ], energy performance [ 14 ], sustainable development [ 8 , 15 , 16 , 17 , 18 ], economic development [ 19 ], social development [ 20 ], healthcare [ 21 ], and eGovernment development [ 22 ], among others. The authors used different variants or hybrids of TOPSIS methods, and their analyses were based on different sources of data.…”

“…Tang et al [ 17 ] assessed the urban sustainability of selected cities in China using a modified TOPSIS based on gray relational analysis and data from the China City Statistical Yearbook, the Anhui Statistical Yearbook, and the Statistical Yearbooks of the cities. Łuczak and Just [ 19 ] explored two types of TOPSIS (classical and positional) for the assessment of economic development of units at different government levels. The study was based on data from the Central Statistical Office of Poland.…”