Established a new criterion for the identification of recursive linear models in which some errors are correlated. Shows that identification is assured as long as error correlation does not exist between a cause and its direct effect; no restrictions are imposed on errors associated with indirect causes. (SLD)

Proposes true score models that can account for correlated errors and their effect on coefficient alpha. These models allow random measurement errors on earlier items to affect directly or indirectly the scores on later items. Conditions under which coefficient alpha may yield spuriously high estimates or reliability are discussed. (SLD)