Dagum and Slottje (2000) estimated household Human Capital (HC) as a Latent Variable (LV) proposing its monetary estimation by means of an actuarial approach. This paper introduces an improved method for the estimation of household HC as LV by means of formative and reflective indicators in...

A new approach for the estimation and the validation of a Structural Equation Model with a formative-reflective scheme is presented. The basis of the paper is a proposal for overcoming a potential deficiency of PLS Path Modeling. In the PLS approach the reflective scheme assumed for the...