EconStor >
Institute for Fiscal Studies (IFS), London >
cemmap working papers, Centre for Microdata Methods and Practice, Institute for Fiscal Studies (IFS) >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/64654
  
Title:Factor rotation with non-negativity constraints PDF Logo
Authors:Pudney, Stephen
Issue Date: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:doi:10.1920/wp.cem.2011.0211
Document Type:Working Paper
Appears in Collections:cemmap working papers, Centre for Microdata Methods and Practice, Institute for Fiscal Studies (IFS)

Files in This Item:
File Description SizeFormat
645167312.pdf335.87 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/64654

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.