Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics

Claes Fornell; David F. Larcker

doi:10.1177/002224378101800313

Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics

Claes Fornell¹; David F. Larcker²

¹ Graduate School of Business Administration, University of Michigan. · ² J.L. Kellogg Graduate School of Management Northwestern University

Journal of Marketing Research 1981

Several issues relating to goodness of fit in structural equations are examined. The convergence and differentiation criteria, as applied by Bagozzi, are shown not to stand up under mathematical or statistical analysis. The authors argue that the choice of interpretative statistic must be based on the research objective. They demonstrate that when this is done the Fornell-Larcker testing system is internally consistent and that it conforms to the rules of correspondence for relating data to abstract variables.

DOI: 10.1177/002224378101800313
Volume: 18 (3)
Pages: 382-388
Language: en
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