Interpretability of Composite Indicators Based on Principal Components

Table 7

Correlations between pillars.

	Traditional PCFA				Constrained PCFA
	ABS	AST	SSN	AC	ABS	AST	SSN	AC
Panel A: Uganda data set
ABS	1.00				1.00
AST	0.02	1.00			0.05	1.00
SSN	0.02	0.35	1.00		0.00	0.00	1.00
AC	0.06	0.37	0.20	1.00	0.05	0.29	−0.05	1.00
Panel B: Chad data set
ABS	1.00				1.00
AST	0.10	1.00			0.17	1.00
SSN	0.12	−0.10	1.00		−0.04	−0.08	1.00
AC	0.08	0.01	0.14	1.00	0.08	0.07	0.06	1.00