The first formula of the coefficient omega (in the
reliability
) will be mainly used in the calculation. The
model-implied covariance matrix of a second-order factor model can be
separated into three sources: the second-order factor, the uniqueness of the
first-order factor, and the measurement error of indicators:
$$ \hat{\Sigma} = \Lambda \bold{B} \Phi_2 \bold{B}^{\prime}
\Lambda^{\prime} + \Lambda \Psi_{u} \Lambda^{\prime} + \Theta, $$
where \(\hat{\Sigma}\) is the model-implied covariance matrix,
\(\Lambda\) is the first-order factor loading, \(\bold{B}\) is the
second-order factor loading, \(\Phi_2\) is the covariance matrix of the
second-order factors, \(\Psi_{u}\) is the covariance matrix of the unique
scores from first-order factors, and \(\Theta\) is the covariance matrix
of the measurement errors from indicators. Thus, the proportion of the
second-order factor explaining the total score, or the coefficient omega at
Level 1, can be calculated:
$$ \omega_{L1} = \frac{\bold{1}^{\prime} \Lambda \bold{B} \Phi_2
\bold{B}^{\prime} \Lambda^{\prime} \bold{1}}{\bold{1}^{\prime} \Lambda
\bold{B} \Phi_2 \bold{B} ^{\prime} \Lambda^{\prime} \bold{1} +
\bold{1}^{\prime} \Lambda \Psi_{u} \Lambda^{\prime} \bold{1} +
\bold{1}^{\prime} \Theta \bold{1}}, $$
where \(\bold{1}\) is the k-dimensional vector of 1 and k is
the number of observed variables. When model-implied covariance matrix among
first-order factors (\(\Phi_1\)) can be calculated:
$$ \Phi_1 = \bold{B} \Phi_2 \bold{B}^{\prime} + \Psi_{u}, $$
Thus, the proportion of the second-order factor explaining the varaince at
first-order factor level, or the coefficient omega at Level 2, can be
calculated:
$$ \omega_{L2} = \frac{\bold{1_F}^{\prime} \bold{B} \Phi_2
\bold{B}^{\prime} \bold{1_F}}{\bold{1_F}^{\prime} \bold{B} \Phi_2
\bold{B}^{\prime} \bold{1_F} + \bold{1_F}^{\prime} \Psi_{u} \bold{1_F}}, $$
where \(\bold{1_F}\) is the F-dimensional vector of 1 and F
is the number of first-order factors.
The partial coefficient omega at Level 1, or the proportion of observed
variance explained by the second-order factor after partialling the
uniqueness from the first-order factor, can be calculated:
$$ \omega_{L1} = \frac{\bold{1}^{\prime} \Lambda \bold{B} \Phi_2
\bold{B}^{\prime} \Lambda^{\prime} \bold{1}}{\bold{1}^{\prime} \Lambda
\bold{B} \Phi_2 \bold{B}^{\prime} \Lambda^{\prime} \bold{1} +
\bold{1}^{\prime} \Theta \bold{1}}, $$
Note that if the second-order factor has a direct factor loading on some
observed variables, the observed variables will be counted as first-order
factors.