--- canonical_url: "https://csls.ca/research/an-assessment-of-weighting-methodologies-for-composite-indicators-the-case-of-the-index-of-economic-well-being/" title: "An Assessment of Weighting Methodologies for Composite Indicators: The Case of the Index of Economic Well-being" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-02T13:03:58+00:00" date_modified: "2026-07-02T13:03:58+00:00" post_type: "research" summary: "" post_tag: - "composite indicators" - "data envelopment analysis" - "dominance rules" - "equal weights" - "IEWB" - "Index of Economic Well-Being" - "weighting methodology" country_focus: - "Canada" province_region: - "National" research_theme: - "Productivity and Economic Measurement" featured_image: "https://csls.ca/wp-content/uploads/2026/07/old-reports_hero_banner_bg.webp" status: "publish" --- # An Assessment of Weighting Methodologies for Composite Indicators: The Case of the Index of Economic Well-being Canonical URL: https://csls.ca/research/an-assessment-of-weighting-methodologies-for-composite-indicators-the-case-of-the-index-of-economic-well-being/ # An Assessment of Weighting Methodologies for Composite Indicators: The Case of the Index of Economic Well-being [Download full PDF report](https://csls.ca/pdf/csls2012-10-1.pdf) Cite this report × Cite this report as: Sharpe, Andrew, and Brendon Andrews. 2012. “An Assessment of Weighting Methodologies for Composite Indicators: The Case of the Index of Economic Well-being.” CSLS Research Report 2012-10. Ottawa: Centre for the Study of Living Standards. https://csls.ca/research/an-assessment-of-weighting-methodologies-for-composite-indicators-the-case-of-the-index-of-economic-well-being/ ## Authors: - Andrew Sharpe Centre for the Study of Living Standards (CSLS) - Brendon Andrews Centre for the Study of Living Standards (CSLS) ## Report 2012-10 December 2012 54 pages ## Related research [A Survey of Indicators of Economic and Social Well-being Andrew Sharpe July 1999 | Report 1999-cprn | 72 pages](https://csls.ca/research/a-survey-of-indicators-of-economic-and-social-well-being/) [Human Well-being and Economic Well-being: What Values Are Implicit in Current Indices? 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For example, the final aggregation of the IEWB was changed to equal weighting after the IEWB was criticized for having a bias against sustainability; however, all weighting schemes have both advantages and shortcomings. To isolate the preferred ordinal ranking for the results, strong and weak dominance rules were established for countries across several observed weighting schemes, and each of these rules were ranked in all possible ways. An ‘iterative dominance equilibrium’ was computed for comparison to observed weighting schemes. Constrained data envelopment analysis (CDEA) performed best, yet CDEA is not ideal for comparisons across countries. Among explicit weights, the original weights of the IEWB were best. Although the original weights are supported, they were controversial – a shift to equal weights mitigated this controversial – it appears equal weights remain least objectionable. L’Indice de bien-être économique (IBEE) — un indicateur composite formé de la consommation, de la richesse, de l’égalité et de la sécurité économique — a subi plusieurs modifications dans la pondération de ses composantes. Par exemple, l’agrégation finale de l’IBEE a été modifiée pour adopter une pondération égale après que l’IBEE eut été critiqué pour son biais défavorable à la durabilité; cependant, tous les schémas de pondération comportent à la fois des avantages et des inconvénients. Afin d’isoler le classement ordinal préféré des résultats, des règles de dominance forte et faible ont été établies pour les pays selon plusieurs schémas de pondération observés, et chacune de ces règles a été classée de toutes les façons possibles. Un « équilibre de dominance itératif » a été calculé aux fins de comparaison avec les schémas de pondération observés. L’analyse d’enveloppement des données contrainte (AEDC) a affiché la meilleure performance, bien qu’elle ne soit pas idéale pour les comparaisons entre pays. Parmi les pondérations explicites, les pondérations initiales de l’IBEE se sont révélées les meilleures. Bien que les pondérations initiales soient appuyées, elles ont fait l’objet de controverse — un passage à des pondérations égales a atténué cette controverse — il semble que les pondérations égales demeurent les moins contestées. [Download full PDF report](https://csls.ca/pdf/csls2012-10-1.pdf)