MULTI-CRITERIA ANALYSIS AS A TOOL FOR ASSESSMENT OF DISTRICT TOWNS
MULTI-CRITERIA ANALYSIS AS A TOOL FOR ASSESSMENT OF DISTRICT TOWNS

Author(s): Roman Vavrek
Subject(s): Methodology and research technology, Present Times (2010 - today), Fiscal Politics / Budgeting
Published by: Masarykova univerzita nakladatelství
Keywords: TOPSIS technique; coefficient of variance; objective weighting methods; correlation analysis; cluster analysis;
Summary/Abstract: A technique for Order of Preference by Similarity to Ideal Solution is a multi-criteria decision analysis method used for complex assessment of a set of alternatives. It is often combined with the CV (Coefficient of Variance) method to determine the weight of these criteria to objectify achieved results. Using these methods, we have assessed a group of district towns in the Slovak Republic based on 2016 data by using six budgetary criteria, including maximizing and minimizing ones. The main contribution of this article is the complex assessment of a selected set of territorial administration entities, differences in their results and the importance of selecting the right method to determine weights, which has a significant impact on the overall results. It can be said that there were almost no differences in results among the majority of district towns, there were no significant correlations between the results and the criteria, and there were some common characteristics in the three created clusters. The analysis has confirmed that it is necessary to pay special attention to the selection of criteria and of the method used to determine their weight, as these factors have a significant impact on the overall results of analysis.

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