A Prosperity Index for British Columbia

The construction of a composite index is just a final step in the representation of the data in the dashboard. [...] Another approach is to use the Min-Max normalization technique, which subtracts the minimum value and divides by the range of indicators, giving values from 0 to 1. Again, for the sake of transparency, BCBC has chosen to use the reciprocal of the index value when an increase in the index represents a negative development from the perspective of prosperity. [...] BCBC has chosen to use an equal weighting scheme for the B. C. Prosperity Index, both for calculation of the domain index based on the indicators in each domain and for the overall index based on the index values for the three domains. [...] In relation to the B. C. Prosperity Index, the key criterion for the selection of the comparator jurisdictions is the perceived relevance or importance of the jurisdiction to the people of British Columbia for both level and growth rate comparisons related to B. C.’s prosperity. [...] In the long run, the key determinant of growth in the living standards of a population is the rate of productivity growth.