On the Relationships among Latent Variables and Residuals in PLS Path Modeling: the Formative-Reflective Scheme
AbstractA new approach for the estimation and the validation of a Structural Equation Model with a formative-reflective scheme is presented. The basis of the paper is a proposal for overcoming a potential deficiency of PLS Path Modeling. In the PLS approach the reflective scheme assumed for the endogenous latent variables is inverted; moreover, the model errors are not explicitly taken into account for the estimation of the endogenous latent variables. The proposed approach utilizes all the relevant information in the formative manifest variables providing solutions which respect the causal structure of the model. The estimation procedure is based on the optimization of the redundancy criterion. The new approach, entitled Redundancy Analysis approach to Path Modeling is compared with both traditional PLS Path Modeling and LISREL methodology, on the basis of real and simulated data.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Università degli Studi di Milano-Bicocca, Dipartimento di Statistica in its series Working Papers with number 20061101.
Length: 28 pages
Date of creation: Nov 2005
Date of revision: Oct 2006
Publication status: Forthcoming in Computational Statistics and Data Analysis
Latent Variables; Partial Least Squares; PLS Path Modeling; Redundancy Analysis; LISREL Model;
Other versions of this item:
- Vittadini, Giorgio & Minotti, Simona C. & Fattore, Marco & Lovaglio, Pietro G., 2007. "On the relationships among latent variables and residuals in PLS path modeling: The formative-reflective scheme," Computational Statistics & Data Analysis, Elsevier, vol. 51(12), pages 5828-5846, August.
- C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
- C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-05-27 (All new papers)
- NEP-ECM-2006-05-27 (Econometrics)
- NEP-ETS-2006-05-27 (Econometric Time Series)
- NEP-MAC-2006-05-27 (Macroeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Tenenhaus, Michel & Vinzi, Vincenzo Esposito & Chatelin, Yves-Marie & Lauro, Carlo, 2005. "PLS path modeling," Computational Statistics & Data Analysis, Elsevier, vol. 48(1), pages 159-205, January.
- Arnold Wollenberg, 1977. "Redundancy analysis an alternative for canonical correlation analysis," Psychometrika, Springer, vol. 42(2), pages 207-219, June.
- Marco Fattore & Matteo Pelagatti & Giorgio Vittadini, 2012. "A least squares approach to latent variables extraction in formative-reflective models," Working Papers 20120302, Università degli Studi di Milano-Bicocca, Dipartimento di Statistica.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Matteo Pelagatti).
If references are entirely missing, you can add them using this form.