Analytic composites and instrumental variables

Analytic composites are weighted aggregations of indicators where the relative weights are set by you, usually based on an existing theory. The menu option “Explore analytic composites and instrumental variables”, available in WarpPLS starting in version 6.0, allows you to create analytic composites. This menu option also allows you to create instrumental variables. Instrumental variables are variables that selectively share variation with other variables, and only with those variables. Instrumental variables can be used to test and control for endogeneity.

Related YouTube videos:

Explore Analytic Composites in WarpPLS

http://youtu.be/bxGi0OY8RD4

Test and Control for Endogeneity in WarpPLS

http://youtu.be/qCvvUxR978U