International Encyclopedia of Statistical Science

2011 Edition
| Editors: Miodrag Lovric

Composite Indicators

  • Jože Rovan
Reference work entry
First Online:
DOI: https://doi.org/10.1007/978-3-642-04898-2_15
How to cite

Definition: A composite indicator is formed when individual indicators are compiled into a single index, on the basis of an underlying model of the multidimensional concept that is being measured (OECD, Glossary of Statistical Terms).

Multidimensional concepts like welfare, well-being, human development, environmental sustainability, industrial competitiveness, etc., cannot be adequately represented by individual indicators. For that reason, composite indicators are becoming increasingly acknowledged as a tool for summarizing complex and multidimensional issues.

Composite indicators primarily arise in the following areas: economy, society, globalization, environment, innovation, and technology. A comprehensive list of indicators can be found at the following address: http://composite-indicators.jrc.ec.europa.eu/FAQ.htm#List_of_Composite_Indicators_

The Handbook on Constructing Composite Indicators: Methodology and User Guide (OECD 2008) recommends a ten-step process of constructing...
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References and Further Reading

  1. An information server on composite indicators and ranking systems (methods, case studies, events) http://composite-indicators.jrc.ec.europa.eu/FAQ.htm#List_of_Composite_Indicators
  2. Freudenberg M (2003) Composite indicators of country performance: a critical assessment, OECD science, technology and industry working papers, OECD Publishing, 2003/16Google Scholar
  3. OECD, European Commission, Joint Research Centre (2008) Handbook on constructing composite indicators: methodology and user guide. OECD PublishingGoogle Scholar
  4. OECD, Glossary of statistical terms (http://stats.oecd.org/glossary/index.htm)
  5. OECD (2003) Composite indicators of country performance: a critical assessment, DST/IND(2003)5, ParisGoogle Scholar
  6. Munda G, Nardo M (2005) Constructing consistent composite indicators: the issue of weights, EUR 21834 EN. Joint Research Centre, IspraGoogle Scholar
  7. Nardo M, Saisana M, Saltelli A, Tarantola S (2005) Tools for composite indicators building. european commission, EUR 21682 EN. Joint Research Centre, Ispra, ItalyGoogle Scholar
  8. Saltelli A (2007) Composite indicators between analysis and advocacy. Soc Indic Res 81:65–77Google Scholar
  9. Sharpe A (2004) Literature review of frameworks for macro-indicators. Centre for the Study of Living Standards, Ottawa, CanadaGoogle Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2011

Authors and Affiliations

  • Jože Rovan
    • 1
  1. 1.University of LjubljanaLjubljanaSlovenia