A common weight MCDA-DEA approach to construct composite indicators

A common weight multi criteria decision analysis (MCDA)-data envelopment analysis (DEA) approach is proposed to construct composite indicators (CIs) The proposed MCDA-DEA model enables the construction of CIs among all entities via a set of common weights The model is capable to discriminate entities which receive CI score of 1 le the efficient entities leading to determination of a single best entity Common weights structure of the proposed model has more discriminating power when compared to those obtained by previous DEA-like models In order to validate the proposed MCDA-DEA model it is applied to two case studies taken from the literature to construct two well-known CIs i e Sustainable Energy Index (SEI) and Human Development Index (HDI) Both the robustness and discriminating power of the proposed method are studied through these case studies and tested by Spearman s rank correlation coefficient The results reveal several merits of the proposed method in constructing CIs (C) 2010 Elsevier B V All rights reserved