On Direction of Dependence in Latent Variable Contexts

Abstract

Approaches to determining direction of dependence in nonexperimental data are based on the relation between higher-than second-order moments on one side and correlation and regression models on the other. These approaches have experienced rapid development and are being applied in contexts such as research on partner violence, attention deficit hyperactivity disorder, and currency exchange rates. In this article, we propose using these methods in the context of latent variables analysis. Specifically, we propose creating component or factor scores and relating the component score or factor score variables to each other by using methods for the determination of direction of dependence. Empirical examples use data from the development of aggression in adolescence. In the discussion, issues concerning the establishment of causal relation in empirical research are addressed.