The Estimate of Latent Variables in a Structural Model: an Alternative Approach to PLS

Giorgio Vittadini, Pietro Giorgio Lovaglio · BOA (University of Milano-Bicocca) · 2001

In this paper we consider the problems arising from PLS in the context of a recursive structural model with latent variables (LV). The estimates of LV¿s are performed in such a way that, in some situations, the role of the manifest variables (MV) in the measurement models is not always respected: this inconsistency justifies another definition of LV and a new measurement model by making rational use of the paths between LV, and those linking the indicators of different LV. The model for the estimate of only LV will be extended to more LV's, and finally, using an RCDR analysis, the parameters matrixes performed satisfy all the properties of the LV in the structural model

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