instrumental variable technique to address large measurement error?
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I got quite low Cronbach's alpha coefficients for the five personality traits in my sample (extraversion, 0.54; agreeableness, 0.55; conscientiousness, 0.60; emotional stability, 0.62; intellect, 0.55.), and all these five personality traits are included in the model as the RHS independent variables.
I know that such low alpha coefficients indicate large measurement errors, and I intend to use instrumental variable techniques to address for measurement error problem, i.e. I will employ 5 instruments for the five personality traits, and try to see what the effects of five personality traits are on the LHS dependent variable.
I just wonder whether such IV technique is enough to correct for measurement errors.