In effect-indicator models the latent variable is the cause and the indicator the effect

Evidence

There are various reasons why this is a plausible interpretation. One speaks of “effect” models, which suggests that the indicators are the effects of causes. The latent variables are independent variables in the causal model while the indicator variables are the dependent variables. — Gary Goertz, Social Science Concepts and Measurement, 341

Categorization

• DEFINE: Explains why the model is called an ‘effect’ model: indicators are the effects of latent causes, so the dependence runs indicator-on-latent.