Remarks on Prof. Kano's Criticism on the Regression Analysis among Estimated Factor Scores

Abstract

Although the regression analysis among estimated factor scores may be criticized due to the attenuation of the estimated regression coefficients, this classical procedure can well separate the inferences of structural models from some propagation of information from the measurement model by approximately applying the conditionality principle. The author justifies and modifies the traditional approach by deriving the structural model with additional paths from measurement errors of the indicator variables to the response variables whose formal inference is nearly equivalent to the classical approaches by factor scores.