<p>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.</p>
Authors
Institute for Social and Economic Research
Working Paper details
- DOI
- 10.1920/wp.cem.2011.0211
- Publisher
- IFS
Suggested citation
Pudney, S. (2011). Factor rotation with non-negativity constraints. London: IFS. Available at: https://ifs.org.uk/publications/factor-rotation-non-negativity-constraints (accessed: 18 May 2024).
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