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Lecture 12

Lecture 12 - February 26th.docx

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Department
Sociology
Course Code
SOCIOL 2Z03
Professor
Gerald Bierling

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Lecture 12 – February 26th • Index construction o Handling missing data:  3 questions, 1­5 response set on attitudes towards criminals • Example: economic freedom index o Step 1: item selection  20 + items (such as government spending, tax levels, inflation, bank competition,  etc.)   Items divided into 4 groups: • Size of government • Rule of law • Openness of markets • Regulation of economy o Step 2: examining empirical relationships  Examined the correlation of items within each sub­group   E.g., size of government sub­group: do income taxes and payroll taxes relate to  each other?  o Step 3 and 4: scoring the index and missing data  Each item scored from 0­10, with 10 indicating   highest level of economic  freedom  Items in each sub­group averaged  Index is an average of the 4 sub­groups  Missing data? For these cases the index was calculated using fewer items o Step 5: Index validation  Correlated index with external measures, such as economic growth and  productivity  • Scale construction o Better in the sense that the construction of scales more properly measures the ordinal  nature of the measures or better captures the intensity of what we’re studying o Likert scaling – use of standardized response categories to determine the intensity of  different items  1 – strongly agree  2 – somewhat agree  3 – neutral  4 –
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