<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: 14 May 2024).
Related documents
More from IFS
Understand this issue
Where next for the state pension?
13 December 2023
Social mobility and wealth
12 December 2023
Autumn Statement 2023: IFS analysis
23 November 2023
Policy analysis
The past and future of UK health spending
14 May 2024
Recent trends in and the outlook for health-related benefits
19 April 2024
Progression of nurses within the NHS
12 April 2024
Academic research
The role of hospital networks in individual mortality
13 May 2024
Forced displacement, mental health, and child development: Evidence from Rohingya refugees
10 May 2024
Leveraging edutainment and social networks to foster interethnic harmony
10 May 2024