An Alternate Approach to Indicator Development

Published Online:https://doi.org/10.1287/mnsc.22.3.384

In the previous paper Professor Malizia develops two tests (“correspondedness” and “correctness”) and uses them for comparing two sets of indicators. He seeks an “evaluation methodology which is ‘objective’ in that it does not depend upon the attitudes of managers or public officials.” Here, a different approach to the problem of evaluating or designing indicators is suggested. Rather than attempting to design multi-purpose indicators, one might deliberately seek to match indicator specifications systematically to the requirements of different managers and public officials. The crucial technical refinements of data definition and measurement precision can then be undertaken in the context of a knowledge of the eventual usage of the indicators being developed.

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