ABSTRACT

In Chapter 7, I dealt with the practice of adding input and output indicators in prevailing digital preparedness indices. Methodologically, it seemed to me that for basic economic reasons one should instead, or in addition, divide the output indicators by the input indicators. Neglect of these productivity calculations could, as I saw it, lead to misleading estimates of digital preparedness. (It is easy to imagine a case, for example, for countries with relatively high productivity to be ranked below countries with more inputs and lower productivity.) The purpose of this brief chapter is to identify some actual cases where the ranking of countries by existing preparedness indicators would change if outputs were divided by, instead of added to, inputs.