Molenaar (2003, 2011) showed that a common factor model could be transformed into an equivalent model without factors, involving only observed variables and residual errors. He called this invertible transformation the Houdini transformation. His derivation involved concepts from time series and state space theory. This article verifies the…

Second-order latent growth curve models (S. C. Duncan & Duncan, 1996; McArdle, 1988) can be used to study group differences in change in latent constructs. We give exact formulas for the covariance matrix of the parameter estimates and an algebraic expression for the estimation of slope differences. Formulas for calculations of the required sample…

Situations for which the researcher should use component analysis versus common factor analysis are discussed. Topics addressed include key algebraic similarities and differences, theoretical and practical issues, the factor indeterminacy issue, latent versus manifest variables, and differences between exploratory and confirmatory analysis…