Aigner, Dennis J.; Hsiao, Cheng; Kapteyn, Arie; … - In: Handbook of econometrics : volume 2, (pp. 1321-1393). 1984
This chapter discusses latent variable models in econometrics. The essential characteristic of a latent variable is revealed by the fact that the system of linear structural equations in which it appears cannot be manipulated so as to express the variable as a function of measured variables...
