Enter the e-mail address associated with your account.
Click "send" to have your password e-mailed to you.

Institute of Public Finance

Creative Commons License
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License

Development index: analysis of the basic instrument of Croatian regional policy

Ana Perišić, Polytechnic of Šibenik, Šibenik, Croatia
Vanja Wagner, University of Zagreb, Faculty of Science, Department of Mathematics, Zagreb, Croatia

The development level assessment and categorization of Croatian local and regional units is based on the value of the development index which is the main instrument of Croatian regional policy. The development index is a composite indicator calculated as a weighted average of five socio-economic indicators. The goal of this paper is to analyze the uncertainty and sensitivity of the development index that arise from the procedures and indicators used in its construction. This analysis is then used to propose useful guidelines for future impovements. The methodology of the Croatian regional development index has been critically reviewed, revealing problems of multicollinearity and the existence of outliers. An empirical and relatively more objective multivariate approach for weight selection has been proposed. The uncertainty and sensitivity analysis were conducted using Monte Carlo simulations and variance-based techniques. Instead of a unique point estimate for the development level of territorial units an alternative confidence interval approach was considered.

Keywords:  development index; composite indicators; multivariate analysis; uncertainty analysis; sensitivity analysis; Croatia

Year:  2015   |   Volume:  39   |   Issue:  2   |   Pages:  205 - 236   

Full text (PDF)   |   DOI: 10.3326/fintp.39.2.4   |   E-mail this article   |   Download to citation manager
 June, 2015
II / 2015
EBSCO Publishing
ISSN 1846-887X
e-ISSN 1845-9757
In order to give you a better user experience, cookies have been stored on your computer.
By accessing the website www.fintp.hr the user has given consent to using cookies. More information