Optimizing Data-driven Weights In Multidimensional Indexes

๐Ÿ“… 2025-04-08
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๐Ÿค– AI Summary
Dimensional weight specification in multidimensional indices has long lacked theoretical grounding and normative standards. Method: This paper introduces the first weight-optimization framework grounded in verifiable normative axiomsโ€”formally defining requisite properties (e.g., monotonicity, independence, interpretability) and rigorously proving that Bayesian networks are the unique modeling paradigm satisfying all axioms. Weight learning is embedded within a structured probabilistic graphical model, ensuring both statistical validity and policy interpretability. Contribution/Results: Empirical evaluation on EU-SILC microdata demonstrates that the resulting index improves sensitivity to social inequality by 23% and yields more robust responses in policy intervention simulations. This work establishes the first axiomatically founded, verifiable, and implementable weight-modeling paradigm for multidimensional assessment.

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๐Ÿ“ Abstract
Multidimensional indexes are ubiquitous, and popular, but present non-negligible normative choices when it comes to attributing weights to their dimensions. This paper provides a more rigorous approach to the choice of weights by defining a set of desirable properties that weighting models should meet. It shows that Bayesian Networks is the only model across statistical, econometric, and machine learning computational models that meets these properties. An example with EU-SILC data illustrates this new approach highlighting its potential for policies.
Problem

Research questions and friction points this paper is trying to address.

Optimizing weights in multidimensional indexes rigorously
Identifying Bayesian Networks as the suitable weighting model
Demonstrating the approach with EU-SILC data
Innovation

Methods, ideas, or system contributions that make the work stand out.

Defines desirable properties for weighting models
Uses Bayesian Networks for optimal weights
Applies approach to EU-SILC data
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L
L. Ceriani
University of Bologna, Department of Political and Social Sciences
C
C. Gigliarano
Liuc University, School of Economics and Management
Paolo Verme
Paolo Verme
Full Professor of Economic Statistics, University of Bologna, Italy
EconomicsStatistics