AF Measure Analysis Issues IV: Redundancy, correlation, complementarity, subjective scales validation (uses of principal components & factor analyses)
Watch the video (includes video guide)
Roche, J.M. (2008). Monitoring Inequality among Social Groups: A Methodology Combining Fuzzy Set Theory and Principal Component Analysis. Journal of Human Development. Vol. 9 (3)
Rutstein, S. and K. Johnson, 2004. The DHS Wealth Index, DHS Comparative Reports No. 6, Calverton, MD: ORC Macro.
Klasen, S. (2000). Measuring Poverty and Deprivation in South Africa. Review of Income and Wealth. Vol. 46, pp. 33-58.
Brown, T. A. (2006) Confirmatory factor analysis for applied research, New York, NY ; London, New York, NY ; London : Guilford Press. (Chapter 2: The common Factor Model and Exploratory Factor Analysis)
Gagne, M., Forest, M.J., Gilbert, M.-H., Aube, C., Morin,E. and Malorni, A. (2010). The Motivation at Work Scale: Validation Evidence in Two Languages. Educational and Psychological Measurement. Vol. 70 (4), pp. 628-646.
Normative Issues in Multidimensional Poverty Measurement
Guide to video
00:00 Introduction
02:42 Outline of the lecture
03:51 Definition of factor analysis, relate to latent variable analysis
08:28 Example of Rustein and Jonston (2004) Wealth Index, principal component analysis
11:37 Other options besides factor analysis (data reduction)
16:58 Example of Lelli (2008), factor analysis vs. fuzzy set theory
Part 1: Exploratory and Confirmatory Factor Analysis
22:08 Definition of exploratory (unrestricted) factor analysis (EFA); calculation steps
27:54 Example of principle component analysis (Klasen, 2000), here weight are based on the correlations between indicators – a statistical solution (see also Normative Issues in Multidimensional Poverty Measurement for choice of weights)
33:30 Confirmatory factor analysis – restricted analysis. Look in Brown’s book both for exploratory and confirmatory reference Brown (2006)
39:50 Literature overview on the goodness of fit
Part 2: Empirical Implementation of Exploratory Factor Analysis
41:16 The different step of exploratory factor analysis (Brown (2006))
43:03 Step 1: the example of Roche 2008
44:46 Step 2: extraction method
46:30 Step 3: determination of appropriate number of factors; sources – Kaiser criterion, Analysis of Scree plot, parallel analysis, normative judgement
52:07 Step 4: method of rotation to obtain your simple structural model, orthogonal and oblique rotation
61:40 Example of Roche (2008), rotation results – construct 3 indices based on factor analysis, discuss weight (link to lecture on normative issues)
70:04 Step 5: interpretation an evaluation of the quality of the solution
70:19 Example of Roche (2008), results of different models
75:28 Example of Galla and Roche (2011), the implicit weight arising from different clusters of variables
76:24 Tetrachoric correlations
77:29 Example Galla and Roche (2011), results
Part 3: Subjective Scale Validation
81:11 Subjective scale validation
81:50 Psychometric evaluation
81:32 Example of Gagne et al (2009), autonomy and work
84:33 The process of subjective scale variation
84:57 Techniques for the different stages of scale validation
85:22 Crombach Alpha
86:05 Example of Steger et al (2006), subjective scale validation, the meaning of life
87:30 Example, subjective scale validation, psychological needs
88:57 Exploratory factor analysis results
91:20 Complementary factor analysis results
92:10 Strength and weaknesses of factor analysis
Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.
For supplementary reading on this topic view
Reading List on Factor Analysis
Reading List on Scale Validation











