Comprehensive Methodology for Construction and Evaluation of Synthetic Indicators: Implications for Quantifying the Economic and Islamic Banking Concepts

The main theme of the article is a discussion about a Comprehensive methodology for construction and evaluation of synthetic indicators. The present study offers a ten-step model and an ideal process in construction of synthetic indicators. Seven steps are related to forming parity index and three others are related to evaluation and revision of index. First Seven steps are as follow: to explain comprehensive theoretical framework, selection of information sources, document missing data, multivariate analysis, normalization of data, weighting and aggregation, presentation and publication. Three other steps are evaluating the index are sensitivity and robustness tests, to see comments of details, communication between the synthetic indicators and other variables. The author of the article believes that suitable capacities of quantifying the economic implications and Islamic banking - as one of the major areas in human and Islamic sciences - must be developed through some definitions which can be quantified by parity index method. The author of the research concludes that the present survey is considered as a preliminary for future researches on quantifying the economic implications and Islamic banking. For instance: justice, economic development, ethical banking…