DP2: Pena Distance Methodology

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.