Measuring well-being by a multidimensional spatial model in OECD Better Life Index framework

Abstract

We propose a multidimensional spatial model to evaluate the well-being using the Better Life Index (BLI) in 36 countries according to a two-steps procedure. First, we position the countries as points in the Euclidean K-dimensional space in which each dimension is a specific aspect of well-being as measured in the BLI. Second, we consider each individual/voter's opinions on the same dimensions to calculate the personal optimal point in that same K-dimensional space. Hence, we measure the distance between optimal point of well-being and the actual observed point at individual level. This distance is interpreted as the individuals' loss in well-being. We show that this loss is negatively related (i) to the overall well-being in terms of BLI and (ii) the main indices of quality of democracy.

In Search of Sustainable Economy Indicators: A Comparative Analysis between the Sustainable Development Goals Index and the Green Growth Index

“…The reviewed literature identified several indicators and indices that could be probable metrics for sustainability, including the Index of Sustainable Economic Welfare (ISEW) [19,20]; Genuine Progress Indicator (GPI) [21,22]; Adjusted Net Savings (ANS) [8]; Better Life Index (BLI) [23][24][25]; World Happiness Index (WHI) [26,27]; Human Development Index (HDI) [28][29][30]; Happy Planet Index (HPI) [31,32]; Environmental Performance Index (EPI) [33]; Ecological Footprint (EF) [29,34,35]; Green Growth Index (GGI) [36]. Understanding these metrics individually and then focusing on the ones that cover more sustainability aspects is a reasonable exercise.…”

Sustainable Development in Europe: A Multicriteria Decision Analysis

“…The hedonic approach suggests deriving weights by the correlation between different dimensions to be included into the composite index and a proxy of self‐reported outcome (Nardo et al , 2008). Stated preferences weights are usually derived by a representative group of individuals in the society (see Resce and Maynard, 2018; Greco et al , 2019).…”

“…Although equal weighting is often supported by the argument that all indicators and all goals are equally important (formally in the 2030 Agenda), some countries might still value some dimensions more than others, especially when it comes to prioritizing policies over time. Assuming fixed weights for all countries does not grasp the contextual heterogeneity present in different countries and the importance of autonomy in setting priorities (Resce and Maynard, 2018; Greco et al , 2019). Hence, different weightings of individual SDGs can have important implications on countries’ performance and relative rankings (Booysen, 2002).…”

Multicriteria and Statistical Approach to Support the Outranking Analysis of the OECD Countries

“…For [4], there are two main reasons why the OECD BLI is an appropriate way for this type of analysis. First, as it contains 24 variables related to 11 different topics, it is one of the most extensive datasets on well-being worldwide [32].…”

“…Considering well-being as a multidimensional concept, it must be measured simultaneously by more than one indicator [4].…”