Method for the estimation of institutional quality indexes using fuzzy logic

Abstract

This paper presents a method to estimate institutional environment indexes using fuzzy modeling. Because of the complexity of the subject, institution, elements associated with this thinking are difficult to measure and compare. In order to address this problem, this research presents how a fuzzy inference system works and how to create institutional indexes from it. While methods that analyze institutional environments generally use secondary data from countries or regions provided by international organizations, the illustrative case applied to aquaculture in Brazil demonstrates the effectiveness of using this method to generate indexes related to the subject from primary data collected at the firm level. Furthermore, the combined use of this method with others already used in the institutional literature can be valuable both for researchers and public policy makers who seek to increasingly understand the role of institutions in economic performance.•Uses a Mamdani expert system of MIMO type to estimate institutional indexes.•Institutional ambient scores related to tilapia production in Brazil are presented.•The combined use of the method with others can be valuable for the research field.