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Published November 19, 2025 | Version v3
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DP2: Pena Distance Methodology

  • 1. ROR icon Universidad Autónoma de Madrid

Contributors

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  • 1. ROR icon Universidad Autónoma de Madrid

Description

Pena Distance (DP2) is an iterative method that assigns weights to partial indicators based on their correlation with a global index, which is the quantification of the latent variable we want to measure (Pena 1977). Its main strength lies in leveraging all the valuable information contained in the indicators while eliminating redundant variance (i.e., avoiding multicollinearity). Traditionally, this technique has been applied to measure quality of life and other social indicators, but it is equally suitable for fields such as environmental assessment thanks to its strong statistical properties: multidimensionality, comparability, and interpretability. This Shiny APP has been elaborated with the assistance of Copilot AI.

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Additional details

Funding

Government of Extremadura
Atlas Socioeconómico de Extremadura

References

  • Pena JB (1977) Problemas de la medición del bienestar y conceptos afines (Una aplicación al caso español). Presidencia del Gobierno, Instituto Nacional de Estadística, Madrid
  • Montero JM, C Chasco and B Larraz (2010) Building an environmental quality index for a big city: a spatial interpolation approach combined with a distance indicator, Journal of Geographical Systems 12-4, 435-459. https://link.springer.com/article/10.1007/s10109-010-0108-6

Temporal Coverage

Spans:

Span:2024