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Normalization Issues in Latent Variable Modeling

Author

Listed:
  • RICHARD WILLIAMS

    (University of Notre Dame)

  • ELIZABETH THOMSON

    (University of Wisconsin—Madison)

Abstract

Structural equation models with latent variables have been popular in the social sciences for some time. Recently such models have been used to make comparisons between groups, within dyads, and across time. However, possible problems with establishing meaningful metrics for unobservable variables in such situations are not universally known and acknowledged. It is shown that, when parameter comparisons are a central focus of the research, the method used to determine the metric of the latent variables (known as normalization) can dramatically and arbitrarily affect conclusions reached. The most commonly proposed solution to this problem, placing equality constraints on corresponding indicator coefficients, is discussed and critiqued. We argue that, in many cases, this approach is both statistically sound and substantively meaningful. We also note that there are several potential problems with this technique that should not be overlooked. Solutions and guidelines for dealing with each of these difficulties are presented.

Suggested Citation

  • Richard Williams & Elizabeth Thomson, 1986. "Normalization Issues in Latent Variable Modeling," Sociological Methods & Research, , vol. 15(1-2), pages 24-43, November.
    • Handle: RePEc:sae:somere:v:15:y:1986:i:1-2:p:24-43
    DOI: 10.1177/0049124186015001002
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    References listed on IDEAS

    as
    1. Linda Beckman & Rhonda Aizenberg & Alan Forsythe & Tom Day, 1983. "A theoretical analysis of antecedents of young couples’ fertility decisions and outcomes," Demography, Springer;Population Association of America (PAA), vol. 20(4), pages 519-533, November.
    2. Richard Williams & Elizabeth Thomson, 1985. "Can spouses be trusted? A look at husband/wife proxy reports," Demography, Springer;Population Association of America (PAA), vol. 22(1), pages 115-123, February.
    Full references (including those not matched with items on IDEAS)

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