The equitable and sustainable well-being at local level: a first attempt of time series aggregation

The on-going economic crisis has reinforced the feeling that macroeconomic indicators, namely economic indicators at country level, do not provide a correct picture of the living conditions in a territory. In fact, individual and local characteristics also influence the well-being of individuals and, within the same country, territories can vary at a large extent. Thus, the analysis of well-being at local level is crucial. Here, we analyse the time series of a selection of indicators that constitute the Equitable and Sustainable Well-being (BES) at local level (NUTS3). After providing an overview of the temporal trends in the selected well-being indicators, we construct a composite index of well-being for groups of regions (NUTS1) applying a latent variable model estimated in a Bayesian framework.