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Confirmatory composite analysis in human development research

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SAGE PUBLICATIONS LTD
DOI: 10.1177/01650254221117506

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Confirmatory composite analysis; indices; composites; model fit assessment; composite model

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This article introduces a statistical method called confirmatory composite analysis (CCA) for assessing composite variables. CCA is a special type of structural equation modeling that can be used to evaluate the rigor of composite variables.
Research in human development often relies on composites, that is, composed variables such as indices. Their composite nature renders these variables inaccessible to conventional factor-centric psychometric validation techniques such as confirmatory factor analysis (CFA). In the context of human development research, there is currently no appropriate technique available for assessing composites with the same degree of rigor comparable to that known from CFA. As a remedy, this article presents confirmatory composite analysis (CCA), a statistical approach suitable to assess composites. CCA is a special type of structural equation modeling that consists of model specification, model identification, model estimation, and model assessment. This article explains CCA and its steps. In addition, it illustrates CCA's use by means of an illustrative example.

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