Use of Composites in Analysis of Individual Time Series: Implications for Person-Specific Dynamic Parameters

Abstract

Psychology has seen an increase in the study of intra-individual processes through time series. Although timely and relevant, modeling variance from unique sources in time series may lead to model non-convergence, making it tempting to reduce the number of parameters in the model. The purpose of this paper was to investigate use of composite scores in analysis of individual time series. To meet this goal, we compared the dynamic factor analysis (DFA) model using multiple indicators with the autoregressive (AR) and autoregressive + white noise (AR + WN) models using composites. We conducted a Monte Carlo study in which a DFA(1,1) model was used to generate the data with varying conditions of size of factor loadings, number of indicators, size of AR parameters, and time series length. We also conducted analysis of empirical data from six individuals’ daily self-reports of mood. Findings indicated that the DFA(1,1) and AR(1) + WN models performed comparably in their recovery of AR parameters, while the AR(1) model underestimated the parameter under nearly all conditions. However, variability of estimates may make the AR(1) + WN model less viable for researchers conducting individual-level analyses when the true data-generating mechanism is the DFA(1, 1) model.