Skip to main content

Canonical Correlations in a Two-Blocks LISREL Model

  • Chapter
  • 218 Accesses


The correlation structure between two blocks of random variables can be summarized by their canonical correlation coefficients and corresponding canonical variates. If these two blocks of variables are the manifest variables of a LISREL model, the canonical correlations can be related to the path coefficients and the canonical variates to the latent factors of the model. If the number of manifest variables becomes large, the canonical correlations approach the path coefficients and the canonical variates come close to the latent factors.


  • Latent Factor
  • Path Coefficient
  • Canonical Correlation
  • Canonical Correlation Analysis
  • Canonical Variate

These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

This is a preview of subscription content, access via your institution.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  • Areskoug, B. (1982), “The first canonical correlation: theoretical PLS analysis and simulation experiments”, in: Jöreskog, K.G. and Wold, H. (eds.) (1982), Part II, Chapter 4.

    Google Scholar 

  • Brown, S.J. (1989), “The Number of Factors in Security Returns”, Journal of Finance 44, 1247–1262.

    CrossRef  Google Scholar 

  • Chamberlain, G. and Rothschild, M. (1983), “Arbitrage and Mean Variance Analysis on Large Asset Markets”, Econometrica 51, 1281–1304.

    CrossRef  Google Scholar 

  • Dljkstra, T.K. (1983), “Some comments on maximum likelihood and partial least squares estimates”, Journal of Econometrics 22, 67–90.

    CrossRef  Google Scholar 

  • Hui, B.S. and Wold, H. (1982), “Consistency at large of partial least squares estimates”, in: JöReskog, K.G. and WOld, H. (eds.) (1982), Part II, Chapter 5.

    Google Scholar 

  • Jöreskog, K.G. and Wold, H. (eds.) (1982), Systems Under Indirect Observation: Causality-Structure-Prediction, Part I and II, North Holland, Amsterdam, New York.

    Google Scholar 

  • Schneeweiss, H. (1990), “Modelle mit latenten Variablen: LISREL versus PLS”, in: Nakhaeizadeh, G. and Vollmer, K.-H. (eds.): Neuere Entwicklungen in der Angewandten Ökonometrie, Physica, Heidelberg, 100–125.

    Google Scholar 

  • Schneeweiss, H. (1991), “Models with latent variables: LISREL versus PLS”, Statistica Neerlandica 45, 145–157.

    CrossRef  Google Scholar 

  • Wold, H. (1982), “Soft modeling: the basic design and some extensions”, in: Jöreskog, K.G. and Wold, H. (eds.) (1982), Part II, Chapter 1.

    Google Scholar 

Download references

Author information

Authors and Affiliations


Editor information

Editors and Affiliations

Rights and permissions

Reprints and Permissions

Copyright information

© 1993 Springer-Verlag Berlin · Heidelberg

About this chapter

Cite this chapter

Schneeweiss, H. (1993). Canonical Correlations in a Two-Blocks LISREL Model. In: Diewert, W.E., Spremann, K., Stehling, F. (eds) Mathematical Modelling in Economics. Springer, Berlin, Heidelberg.

Download citation

  • DOI:

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-78510-8

  • Online ISBN: 978-3-642-78508-5

  • eBook Packages: Springer Book Archive