Factor rotation with non-negativity constraints

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: cemmap working paper ; No. CWP02/11

Classification and Topics

• Classification: Wirtschaft ; Hypothesis Testing: General ; Multiple or Simultaneous Equation Models: Classification Methods; Cluster Analysis; Principal Components; Factor Models ; Health: General
• Subject: Factor rotation ; Inequality constraints ; Chen-Szroeter test ; Disability

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Pudney, Stephen
• Event: Veröffentlichung
• (who): Centre for Microdata Methods and Practice (cemmap)
• (where): London
• (when): 2011

Further information

• DOI: doi:10.1920/wp.cem.2011.0211
• Handle: http://hdl.handle.net/10419/64654
• Last update: 10.03.2025, 11:42 AM CET