Conventional covariance structure analysis, such as factor analysis, i
s otten applied to data that are obtained in a hierarchical fashion, s
uch as parents and siblings observed within families. However, multiva
riate modeling of such data are most frequently done as if the data we
re obtained as a simple random sample from a single population. An alt
ernative specification is presented which explicitly models the within
-level and between-level covariance matrices in familial substance use
. Results demonstrate homogeneity in substance use within families but
heterogeneity across families which could be accounted for by family-
level variables of marital status, economic status, and biological rel
ationships. It is shown that conventional covariance structure softwar
e can be easily adapted to handle hierarchical models, providing a lar
ge set of new analysis possibilities for multi-level data. (C) 1997 El
sevier Science Ireland Ltd.