Indicators Definition: Non Compensatory Methods

Abstract

Talking about quantitative statistical methods, the difference between compensatory and noncompensatory methods is often debated in literature. The use of noncompensatory methods is increasing for how it concerns the analysis of multidimensional systems. The noncompensatory approach permits to overcome problems related to the nonsubstitutability of the selected indicators. This approach, inserted in a precise conceptual framework, allows to analyze a phenomenon in a less equivocal way. However, it is not always clear when it is correct, from a theoretical point of view, to use a method of compensatory nature and what are the advantages and implications of applying a partially noncompensatory method. An attempt can be made to provide clear notions about the criteria for choosing partially noncompensatory methods. Starting with the debate about compensatory and noncompensatory methods of analysis and their evolution over time in the first paragraph, in the second paragraph hints about noncompensatory applications to case studies are provided.