Evaluating Endogeneity of Sample Elements

Evaluating Endogeneity of Sample Elements

Overview

Country outcomes may be routinely qualified by examining the autogenous characteristics (endogeneity) and attributes of multivariate time series panel data. By this line of reasoning, evaluating endogeneity is defined as a visceral methodology conducted to identify connative modalities of internal causation.

The MSI approach to evaluating endogeneity is specific to contemporary advances in stylised data collation and the availability of structured indices featuring coherent longitudinal sub-indexisation of the principal measures.

MSI estimates endogeneity of sample elements by a systematic process of lateral consolidation, data point condensation and interior rankings. Conventional methods of stastical data analysis may also be useful to supplement interpretation of results.

Summary Methodology

> Data Point Consolidation

> Data Point Condensation

> Data Point Ranking

> Data Analysis

Data Point Consolidation

Consolidate the data points (sub-indices) in serial order.

Table 1: Sample Data Point Consolidation Table

How to cite this article

MSI (2012) Evaluating Endogeneity of Sample Elements. Minority Sector Indices (MSI) Web Channel. RDX e-Publishing.

Data Point Condensation

Condense the data points at the desired duration which is usually delimited by the availability of data. This is done by evaluating the coefficient of determination (r squared) for each sample element (country) along each data point (sub-index).

Note a minimum of three instances (measurements) such as years, of the chosen data point is required for condensation validity.

Application: GGG Data Series (2007-2011)

Using the Global Gender Gap (GGG) Index produced by the World Economic Forum as a case application, the data point condensation procedure for a selection of the Top 10 GGG countries in 2011 is shown in the tables below.

Table 2: Global Gender Gap Index (Top 10) Data Point Condensation

NB. Uniform data series typically result in 'error' computations (eg. SI-1 and SI-2 sets exhibit horizontally uniform scores of 1.00 which return an 'error' result. For practical purposes, numerical consolidation of these data points may be adjusted to 1.00, subject to professional judgment.

Data Point Ranking

Re-consolidate the condensed data series as a preliminary to systematic data point ranking.

Re-consolidated Data Points

Table 3: Reconsolidation of Table 2

Rankings of the Condensed Data Points

Table 4: Ranking of Sub-Indices shown in Table 3

Data Analysis

Statistical data analysis may be used to improve interpretation of multivariate time series implications for each of the sample elements.

Table 5: Summary Rankings Results of Table 4

Application: Evaluating Endogeneity

The statistical analysis indicate that in 2011 Iceland obtained the highest world score for equality on measures of the Global Gender Gap (GGG).

Evaluating endogeneity, Iceland achieved the highest internal measures over the medium-long run (2007-2011) for Political Empowerment (0.9724), incrementally above internal durability scores for equality of Education Attainment (0.7864). On core dimensions of gender equality, Iceland is more consistent on measures of Health & Survival (0.7500) compared to Economic Participation & Opportunity (0.6608).

Durability of Internal Scores

Chart 1: Data Analysis of Endogeneity (Iceland)

Over the medium-long run, Iceland attained positive outcomes (above mean, median and mode values) on sub-index 1 (SI-1) representing gender equality of economic participation and opportunity. Over the same duration, Iceland scored negative outcomes (below mean, median and mode values) on all other sub-indexes (SI-2, SI-3, and SI-4), such as to highlight interior dimensionalities of country GGG composition.

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Homologous Endogeneity

Chart 2: GGG Score for Iceland

Over the study period (2007-2011), endogeneity of Iceland's GGG score may be internally ranked by highest to lowest order of gender equality: Iceland is best at Political Empowerment (0.9724), second best at Education Attainment(0.7864), third best at Health & Survival (0.7500) and fourth best at Economic Participation & Opportunity (0.6608).

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Sub-Sample Endogeneity

Chart 3: GGG Score of Top 3

Compared to GGG Top 3 global peers, Iceland exhibits the most balanced cross-sectoral result for all sub-indices and has the absolute highest net score. Comparator countries may be characterised as relatively similar, but with a higher percentage of SI-1 in Norway (second place), and an even higher percentage SI-1 though only marginal SI-2 in Finland (third place).

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