Applicability of the Multi- Group Confirmatory Factor Analysis to Construction of Business Sentiment Indicators
Streszczenie
The paper presents arguments that advocate for application of the multi-group confirmatory
factor analysis as a tool for constructing sentiment indicators in business surveys. Reliable
measurement and comparisons of the sentiment mean between periods require measurement
invariance on its three basic levels-configural, metric and scalar invariance. It is hypothesized that
only sets of questions that are internally coherent can serve as a group of proxies for business
sentiment indicator. An attempt to construct two different sentiment indicators for manufacturing
industry is performed. The results show that only for the set of coherent proxies it is possible to
estimate model with measurement invariance.
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