Dynamic Evaluation of Index Systems using Vertical and Horizontal Grading Method

The utilization of cross-sectional data is highly appropriate, yet the computation of panel data in a time series context may exhibit certain limitations in explanatory capacity. Consequently, to circumvent potential inaccuracies stemming from static evaluation techniques, an index system is subjected to further evaluation via the vertical and horizontal grading method. This method serves to optimize distinctions between evaluation entities on a time series three-dimensional data table, ultimately achieving dynamic comparability in evaluation outcomes. The steps involved in the implementation of the vertical and horizontal grading method are outlined in the appendix.