Structural Equation Modelling

(SEM)
An Introduction (Part 1)
What is Structural Equation Modelling?
SEM is a general statistical modelling technique used to establish relationship among
variables.

SEM is a confirmatory data analysis technique, i.e.

it tests models that are conceptually derived, beforehand
it tests if the theory fits the data

SEM can be thought of as a combination of factor analysis and multiple regression

it can simultaneously test measurement and structural relationships

SEM is a family of related procedures. It is alternately defined by the following terms

Path Analysis, Path Modelling, Causal Modelling, Analysis of Covariance Structures, Latent
Variable Analysis, Linear Structural Relations
Covariance: At the Heart of SEM
Covariance is a measure of how much two random variables change
together. Alternately, it can be defined as the strength of association
between the two variables and their variabilities.

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OR =
1

The basic statistic of SEM

Understanding patterns of correlations among a set of variables
Explain as much of their variance as possible with the model specified
Logic of SEM
Every theory (model) implies a set of correlations
And why variables are correlated

Necessary (but insufficient) condition for the validity of the theory is

that it should be able to reproduce the correlations that are actually
observed
i.e., the implied covariance matrix should = the actual covariance
matrix
Why SEM over Regression?
Regression allows for only a single dependent variable,
whereas SEM allows for multiple dependent variables.

SEM allows for variables to correlate, whereas regression

adjusts for other variables in the model.

Regression assumes perfect measurement, whereas SEM

accounts for measurement error.
USES OF SEM
Theory testing
Strength of prediction/association in models with multiple DVs
Model fit
Mediation/tests of indirect effects
Group differences
Multiple-sample analysis
Longitudinal models
Multilevel nested models
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