What Does FAEC Stand For?

FAEC stands for Factor Analysis With Equilibrium Constraints

FAEC, or Factor Analysis With Equilibrium Constraints, is a statistical methodology that combines traditional factor analysis techniques with constraints that ensure equilibrium within the analyzed data set. This approach is particularly useful in fields such as economics and social sciences, where interdependencies among variables must be maintained. By incorporating equilibrium constraints, FAEC enhances the robustness and interpretability of factor models, allowing researchers to derive insights that are more consistent with theoretical frameworks and real-world dynamics.