Selected approaches of variables weighting in frame of composite indicator analysis

Abstract

Composite indicators are useful as tool for complex evaluation and aggregation of different variables of regional development. Variables which are aggregated in a composite indicator have first to be weighted. All variables may be given equal weights or they mea be given differing weights which reflect the significance, reliability or other characteristics of the underlying data. The weights given to different variables heavily influence the outcomes of the composite indicator. Aim of this paper is an evaluation of selected methods for weighting of particular variables in frame of composite indicator construction. Evaluation is verified on group of regional economic variables based on Strategy of regional development.