Structural view independence A criterion for judging the objectivity of economic parameters measured by opinion survey.pdfVIP

Structural view independence A criterion for judging the objectivity of economic parameters measured by opinion survey.pdf

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Structural view independence A criterion for judging the objectivity of economic parameters measured by opinion survey.pdf

Measurement 47 (2014) 161–177 Contents lists available at ScienceDirect Measurement journal homepage: /locate/measurement Structural view independence: A criterion for judging the objectivity of economic parameters measured by opinion survey P.J. Thomas ? Risk Management, Systems Analytics, School of Engineering and Mathematical Sciences, City University London, Northampton Square, London EC1V 0HB, UK article info Article history: Received 31 January 2013 Received in revised form 24 June 2013 Accepted 21 August 2013 Available online 28 August 2013 Keywords: Structural view independence Sample mean Opinion survey Soft measurement Economic measurement Contingent valuation abstract Economic measurements have a great in?uence over all our lives, but as with other soft measurements, signi?cant effort is needed to ensure their objectivity. This is particularly true of the process of consolidating into a single representative ?gure different people’s valuations of a non-market good (‘‘views’’), as measured by opinion survey. Sometimes the views are transformed and averaged before being returned to the original domain as the back-transformed mean. Examples are the geometric mean resulting from a logarithmic transformation and the root-mean-squared (r.m.s.) value from a square transformation. Such transformations are tested for objectivity using the new criterion of structural view independence. It is shown that an analyst using any general, nonlinear, increasing and differentiable transformation other than the linear transformation can know at the outset that he is giving greater weight to views of his choosing, meaning that he has no claim to objectivity. Of all such transformations, only the linear transformation possesses the desirable property of structural view independence. The resultant sample mean is objective and the only consolidated ?gure recommended for human views. ó 2013 Elsevier Ltd. All rights reserved. 1. Introduction In a very real sense, our understanding

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