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A Maximum Entropy Perspective of Pena’s Synthetic Indicators

9 Pages Posted: 2 Apr 2012 Last revised: 3 Apr 2012

Sudhanshu K. Mishra

North-Eastern Hill University (NEHU)

Date Written: April 1, 2012

Abstract

This paper uses mixed combinatorial-cum-real particle swarm method to obtain a heuristically optimal order in which the constituent variables can be arranged so as to yield some generalized maximum entropy synthetic indicators that represent the constituent variables in the best information-theoretic sense. It may help resolve the arbitrariness and indeterminacy of Pena’s method of construction of a synthetic indicator which at present is very sensitive to the order in which the constituent variables (whose linear aggregation yields the synthetic indicator) are arranged.

Keywords: Synthetic indicators, Composite indices, Pena’s distance, Mixed Combinatorial Particle swarm, Sharma-Mittal entropy, Rényi entropy, Tsallis entropy. Kaniadakis entropy, Abe entropy

JEL Classification: C18, C43, C44, C61

Suggested Citation

Mishra, Sudhanshu K., A Maximum Entropy Perspective of Pena’s Synthetic Indicators (April 1, 2012). Available at SSRN: https://ssrn.com/abstract=2032479 or http://dx.doi.org/10.2139/ssrn.2032479

Sudhanshu K. Mishra (Contact Author)

North-Eastern Hill University (NEHU) ( email )

NEHU Campus
Shillong, 793022
India
03642550102 (Phone)

HOME PAGE: http://www.nehu-economics.info

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