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Title:Factor rotation with non-negativity constraints PDF Logo
Authors:Pudney, Stephen
Issue Date:2011
Series/Report no.:ISER Working Paper Series 2011-05
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 load- ings. 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
Document Type:Working Paper
Appears in Collections:ISER Working Paper Series, Institute for Social and Economic Research (ISER), University of Essex

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