Structural Equation Modelling (SEM)

An Introduction (Part 2)

SEM: Basic Concepts

Measured Variable or Indicator Variable Latent Variable Measurement Model Structural Model

Basic Concepts: Measured Variable/Indicator

Measured variable(s) are the variables that are actually measured in the study.

Intelligence

Score in Maths

General Knowledge

Score in English

Basic Concepts: Latent Variable

Intangible constructs that are measured by a variety of indicators (more is better!)

Latent Variable

Measured Variable 1

Measured Variable 2

Measured Variable 3

Basic Concepts: Measurement Model

The measurement model can be described as follows. It shows the relationship between a latent variable and its measured items(variables).
Latent Variable

Measured Variable 1

Measured Variable 2

Measured Variable 3

Basic Concepts: Structural Models

Often used to specify models in SEM Causal flow is from left to right; top to bottom Straight arrows represent direct effects Curved arrows represent bidirectional correlational relationships Ellipses represent latent variables Boxes/rectangles represent observed variables

Example: Structural Models

Variants of Structural Equation Modelling

Confirmatory Factor Analysis (CFA) Path Analysis with observed variables Path analysis with latent variables

Confirmatory Factor Analysis Measurement Model

Tests model that specifies relationships between variables (items) and factors
And relationships among factors

Confirmatory
Because model is specified a priori

Example: Oblique CFA Model

Confirmatory vs. Exploratory Factor Analysis

In CFA the model is specified a priori Based on theory EFA is not a member of the SEM family Includes a class of procedures involving centroids, principal components, and principal axis factor analysis Does not require a priori hypothesis about relationships within your model Inductive vs. deductive approach More restrictions on the relationships between indicators and latent factors

Example: Oblique EFA Model

Observed Variable Path Analysis (OVPA)

Tests only a structural model Relationships among constructs represented by direct measured (observed variables) i.e., each box in model is an idem, subscale, or scale
Analogous to a series of multiple regressions But, with MR, we would need k different analyses, where k is # of DVs With SEM, can test entire model at once

Example: OVPA

Latent Variable Path Analysis (LVPA)

Simultaneous test of measurement and structural parameters CFA and OVPA at same time LVPA models incorporate. Relationships between observed and latent variables (i.e., measures and factors) Relationships between latent variables Error & disturbances/residuals

Example: LVPA

Data Considerations
Sample Size SEM is a large-sample technique The required Sample size needed depends on. Complexity of model Ratios of sample size to estimated parameters ranging from 5:1 to 20:1 (Bentler & Chou, 1987; Kline, 2005) Data Quality Larger samples for non-normal data

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