, Volume 29, Issue 2, pp 105-113

Instrumental variables in factor analysis

  • Albert MadanskyAffiliated withRand Corporation

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The factor analysis model is rewritten as a system of linear structural relations with errors in variables. The method of instrumental variables is applied to this revised form of the model to obtain estimates of the factor loading matrix. The relation between this method and interbattery analysis, proportional profile analysis, and canonical factor analysis is pointed out. In addition, an estimation procedure based on replicated sampling different from proportional profile analysis is given.