On the Identifiability in the Latent Budget Model

end-member model . A major drawback of the latent budget model is that, in general, the model is not identifiable, which complicates the interpretation of the model considerably. This paper studies the geometry and identifiability of the latent budget model. Knowledge of the geometric structure of the model is used to specify an appropriate criterion to identify the model. The results are illustrated by an empirical data set.