Foa, Roberto2013-12-062013-12-062013-11-11https://hdl.handle.net/10986/16370Recent years have seen growing interest in the conceptualization and measurement of household risk preparedness at the cross-country level. This paper discusses the challenges faced in the design of composite indices, including indicator selection, aggregation, weighting, and how they might be addressed in the composition of a risk preparedness measure. A simple risk index is devised and a series of diagnostic tests conducted in order to demonstrate the robustness of the new measures and its degree of construct validity.en-USCC BY 3.0 IGOrisk preparednessrisk indexhousehold riskindicatorsindex designindex diagnosticsaggregate indexweightingprinciple components analysisPCAimputationestimated margin of errorrescalingfactor analysisindicator correlationWorld Bank10.1596/16370