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Many factor analysis and multidimensional item response models for dichotomous variables have been proposed in literature. The models and various methods for estimating the item parameters are reviewed briefly. In a simulation study these methods are compared with respect to their estimates of the item parameters both in terms of an item response theory formulation and in terms of a factor analysis formulation. It is concluded that for multidimensional data a common factor analysis on the matrix of tetrachoric correlations performs at least as well as the theoretically appropriate multidimensional item response models.
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Knol et al. (1991) studied this question.
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