Estimating Reliability Coefficients with Heterogeneous Item Weightings Using Stata: A Factor Based Approach

Tjalling C. Koopmans Research Institute Discussion Paper No. 11-19

11 Pages Posted: 21 Mar 2012

See all articles by Martijn Adriaan Boermans

Martijn Adriaan Boermans

De Nederlandsche Bank; Utrecht University - School of Economics

Mark Kattenberg

Utrecht University

Date Written: November 1, 2011

Abstract

We show how to estimate a Cronbach's alpha reliability coefficient in Stata after running a principal component or factor analysis. Alpha evaluates to what extent items measure the same underlying content when the items are combined into a scale or used for latent variable. Stata allows for testing the reliability coefficient (alpha) of a scale only when all items receive homogenous weights. We present a user-written program that computes reliability coefficients when implementation of principal component or factor analysis shows heterogeneous item loadings. We use data on management practices from Bloom and Van Reenen (2010, JEL) to explain how to implement and interpret the adjusted internal consistency measure using the user-command afa.

Keywords: afa, factor analysis, Cronbach's alpha, reliability, heterogeneous scale construction, latent variable

JEL Classification: C49, C87, M21

Suggested Citation

Boermans, Martijn Adriaan and Kattenberg, Mark, Estimating Reliability Coefficients with Heterogeneous Item Weightings Using Stata: A Factor Based Approach (November 1, 2011). Tjalling C. Koopmans Research Institute Discussion Paper No. 11-19, Available at SSRN: https://ssrn.com/abstract=2026433 or http://dx.doi.org/10.2139/ssrn.2026433

Martijn Adriaan Boermans (Contact Author)

De Nederlandsche Bank ( email )

PO Box 98
1000 AB Amsterdam
Amsterdam, 1000 AB
Netherlands

Utrecht University - School of Economics ( email )

Kriekenpitplein 21-22
Adam Smith Building
Utrecht, +31 30 253 7373 3584 EC
Netherlands

HOME PAGE: http://www.uu.nl/leg/staff/MABoermans/0

Mark Kattenberg

Utrecht University ( email )

Vredenburg 138
Utrecht, 3511 BG
Netherlands

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