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Michael J. Murray

The chapter seeks to inform readers of factor analysis as an analytical procedure for conducting heterodox economic research, particularly research conducted within a grounded theory_critical realist framework. The chapter enlightens the readers to analytical methods of model building suitable for social and behavioral research. Factor analysis is used many social science disciplines, including business, psychology, sociology, and anthropology, and is just beginning to penetrate the economic discipline. Factor analysis provides a toolkit for those who seek a broader understanding of social and economic phenomena in terms of its underlying social structure. The chapter contextualizes factor analysis within the heterodox economic approach of critical realist_grounded theory and discusses the various methods within factor analysis and conditions for their use.