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

Claes Fornell, David F. Larcker

Journal of Marketing Research · 1981 · 13,304 citations

Abstract

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.

Cite this paper

Fornell, C., & Larcker, D. F. (1981). Structural equation models with unobservable variables and measurement error: Algebra and statistics. Journal of Marketing Research, 18(3), 382–388. https://doi.org/10.1177/002224378101800313

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  1. Evaluating Structural Equation Models with Unobservable Variables and Measurement Error1981
  2. Alternative Ways of Assessing Model Fit1992
  3. Comparative fit indexes in structural models.1990

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