I have two questions regarding formative model. I feel as though formative models have not been covered well anywhere.
Formative models needs supplemented with additional variables for the model to be identified. In case when using a formative model in SEM, does the factor scale of the latent variable still have a mean of 0 and variance of 1 if the syntax are following:
n1 by; n1 on y1* y2 y3; n1@1;
X1 on n1 X2 X3 X4;
a) Here does the latent variable have a mean of 0 and variance defined by metric of either X1 X2 X3 or X4 or by variance of 1?
- And on the following
n1 by; n1 on y1@1 y2 y3; n1@0;
X1 on n1 X2 X3 X4
b) here does the latent variable have a mean of 0 and variance defined by metric of either X1 X2 X3 or X4 or by variance of y1?
You say the formative factor regressed on. This means it is a dependent variable. You show it as an independent variable. Which do you mean? If you mean an independent variable, what is the scale of x1 and x2.