A Surrogate-Constrained Composite Indicator for Measuring Human and Sustainable Development

The Human Development Index (HDI) is a key reference for ranking nations and guiding policy decisions, yet its methodology is often considered arbitrary and limited compared to the broader Sustainable Development Goals (SDGs) framework. To address this, this study proposes and estimates a composite indicator integrating dimensions from both the HDI and the SDGs. The indicator is constructed using the Benefit of the Doubt (BoD) approach, which allows for a more favorable weight distribution. The methodology is applied to 27 member countries of the European Union, incorporating a surrogate procedure within the BoD framework to impose an adaptive lower bound and prevent the attribution of zero weights to sub-indicators. The findings suggest an aggregation methodology with a less arbitrary weight structure that facilitates meaningful country comparisons, similar to the HDI, while promoting a more nuanced understanding of human development by encompassing a wider array of economic and social perspectives.