Thursday, September 29, 2011

Simple Way to Analyze and Present Historical Data from Different Sources

I had historical data for 8 different indexes designed to measure economic, social, and market development across countries. I wanted to conduct a case study on Argentina to determine how the country performed across all 8 indexes in the last decade. Here is how I approached the case study:


First of all, information was not always available for the 2001-2011 time period so for some indexes I have 2006-2011, 2004-2011, etc. What I did was "normalize" the rankings by dividing Argentina's ranking over the total number of countries ranked for that particular index. I then came up with a score between 0 and 1. Note that in the "*Methodological Note" I write that a higher score indicates inferior performance, which seems counter-intuitive.

This is a rather simple case study but it is powerful in that it identifies improvement in only 2 out of 8 indexes and gives us a broad overview of Argentina's recent macroeconomic performance.

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