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CPS1866 Milica Maricic et al.
important step in the validation or scrutinization of the final metric. Dimension
reduction has several benefits. First, policymakers and composite index users
will be given a less complex theoretical framework. Second, the index creators
might speed up the data collection process as less data is needed to be
acquired. Finally, a complex structure does not guarantee that the final
composite index will effectively measure the desired phenomenon. In some
cases, adding indicators decreases the quality of the metric (Van der Maaten
et al., 2009).
Herein we proposed the application on the novel hybrid weighting
approach, the eSS-CIDI, to devise a novel weighting scheme and to reduce the
number of indicators within a composite indicator. As a case study, we
scrutinized the acknowledged Sustainable Society Index (SSI). The results
indicated that two indicators can be excluded from the SSI framework to
simplify its structure and to improve the stability of the composite indicator.
The results also show that the eSS-CIDI can be successfully used in the process
of dimension reduction. The future directions of the study could be two-fold.
One direction could be the modification of the eSS-CIDI algorithm (different
approach to choosing subsample size, number of resamples, or weight
bounds). The other direction could be towards the inclusion of expert opinion
in defining final weight bounds.
We hope that the presented approach and the obtained results can be a
foundation for further research on dimension reduction procedures and
composite indicators.

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