Application of the “Benefit-Of-the-Doubt” Approach for the Construction of a Digital Access Indicator: A Revaluation of the “Digital Access Index”

Abstract

The use of composite indicators as a tool for ranking and making decisions is ever increasing in a world marked by the inequalities and competition in all domains. However, the dependence of countries ranking on the weighing scheme used to aggregate individual indices or sub-indicators, most of the time set by experts/stakeholders may weaken the credibility of composite indicators. One method which is able to overcome these limits is the “Data Envelopment Analysis” approach, particularly named “Benefit-Of-the-Doubt” in the context of composite indicators’ construction. We propose a revaluation of the Digital Access Index given that Information technology is the most important factor driving improvement in a wide array of areas critical for the quality of life for individuals as well as societies. We have shown that this method is more suitable for identifying trends and drawing attention to particular issues and also for setting policy priorities. In fact, the weights of the individual indices, used to compute the composite indicators are based on the data itself and are proper for the country under consideration. These weights contain adequate information in order to help policy-makers to better understand the nature of the new innovation economy and the types of public policies needed to drive innovation, productivity and broad-based prosperity for its citizens.