#2044
Paras Mehta
Keymaster

Yes, it is possible. The matrix to use would be a beta matrix. If a latent factor V is defined by other latent variables U_1 to U_p, a (p by 1) beta matrix with one of the paths fixed to 1.0 will do the trick.

Simplest case is the ‘hierarchical random-intercept’:
http://xxm.times.uh.edu/learn-xxm/three-level-hierarchical-model-with-observed-and-latent-variables-at-multiple-levels/

Here is an example of random-slopes for a latent DV.
http://xxm.times.uh.edu/learn-xxm/two-level-confirmatory-factor-analysis-with-a-random-slope/

In each case, a factor is defined by other latent factors.

Best,

Paras