TY - JOUR TI - Structural Equation Models with Unobservable Variables and Measurement Error: Algebra and Statistics AU - Claes Fornell AU - David F. Larcker PY - 1981 JO - Journal of Marketing Research DO - 10.1177/002224378101800313 UR - https://doi.org/10.1177/002224378101800313 AB - Several issues relating to goodness of fit in structural equations are examined. The convergence and differentiation criteria, as applied by Bagozzi, are shown not to stand up under mathematical or statistical analysis. The authors argue that the choice of interpretative statistic must be based on the research objective. They demonstrate that when this is done the Fornell-Larcker testing system is internally consistent and that it conforms to the rules of correspondence for relating data to abstract variables. ER -