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Published online by Cambridge University Press: 01 January 2025
Nonlinear common factor models with polynomial regression functions, including interaction terms, are fitted by simultaneously estimating the factor loadings and common factor scores, using maximum-likelihood-ratio and ordinary-least-squares methods. A Monte Carlo study gives support to a conjecture about the form of the distribution of the likelihood-ratio criterion.
The research reported in this paper was partly supported by Natural Sciences and Engineering Research Grant No. A6346.