Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/64654
Authors: 
Pudney, Stephen
Year of Publication: 
2011
Series/Report no.: 
cemmap working paper CWP02/11
Abstract: 
Factor rotation is widely used to interpret the estimated factor loadings from latent variable models. Rotation methods embody a priori concepts of 'complexity' of factor structures, which they seek to minimise. Surprisingly, it is rare for researchers to exploit one of the most common and powerful sources of a priori information: non-negativity of factor loadings. This paper develops a method of incorporating sign restrictions in factor rotation, exploiting a recently-developed test for multiple inequality constraints. An application to the measurement of disability demonstrates the feasibility of the method and the power of non-negativity restrictions.
Subjects: 
Factor rotation
Inequality constraints
Chen-Szroeter test
Disability
JEL: 
C12
C38
I10
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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