Template-type: ReDIF-Paper 1.0
Author-Name: Pudney, Stephen
Title: Factor rotation with non-negativity constraints
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.

Creation-Date: 20110214
Number: 2011-05
Publication-Status: published
File-URL: https://www.iser.essex.ac.uk/wp-content/uploads/files/working-papers/iser/2011-05.pdf
File-Format: Application/pdf
Handle: RePEc:ese:iserwp:2011-05