Factor analysis is a statistical method used to find a small set of unobserved variables (also called latent variables, or factors) which can account for the covariance among a larger set of observed variables (also called manifest variables). A factor is an unobservable variable that is assumed to influence observed variables. Scores on multiple tests may be indicators of intelligence (Spearman, 1904); political liberties and popular sovereignty may measure the quality of a country’s democracy (Bollen, 1980); or issue emphases in election manifestos may signify a political party’s underlying ideology (Gabel & Huber, 2000). Factor analysis is also used to assess the reliability and validity of measurement scales (Carmines & Zeller, 1979)
