Weighting in composite indices construction: the case of the Mazziotta-Pareto Index

Abstract

This paper presents a weighted version of the Mazziotta-Pareto Index (MPI) and Adjusted MPI (AMPI). Since the MPI and AMPI are based on the calculation of the mean and standard deviation of normalized values, for each unit, we calculate the weighted mean and weighted standard deviation of normalized values. The weighted coefficient of variation is then obtained by simply dividing the weighted standard deviation by the weighted mean. Finally, the two standard formulas can be applied. Some numerical examples are also shown, in order to assess the effect of different weighting schemes on the results