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3.2.1 A unifying framework for composite indices

This module is organized along four lessons. The objective of this module is to familiarize you with the key steps to undertake when constructing a CI. The first lesson will develop a theoretical framework to support CIs’ construction. Notably, it will cover topics such as variables selection and data issues. The second lesson will introduce a unifying approach to construct CI by discussing aspects related to transformation functions and the elasticity of substitution. The entire third lesson will be devoted to an essential aspect in the construction of a CI: the choice of weights. Finally, the module will conclude by addressing questions arising after the construction of a CI. For instance, lesson four will discuss how to assess the robustness of the resulting CI. By the end of this module you will be familiar with all the most important technical (or say statistical) steps involved in constructing CIs.

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