Structural

equation
modelling
SUBTITLE

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 regressiona

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.
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, wawhereas 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

SEM: Basic Concepts

Measured Variable or Indicator Variable
Latent Variable
Measurement Model
Structural Model

Basic Concepts: Measured

Measured variable(s) are the variables that are actually measured in the study.
Variable/Indicator
Latent
Variable

Measured Variable 1

Measured Variable 2

Measured Variable 3

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
represent
direct effects
Curved arrows
arrows
represent
bidirectional relationships
Ellipses represent latent variables
Boxes/rectangles represent observed
variables

correlational

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
In CFA the model is specified a priori
Analysis
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

CFA Models: Important

Steps
Model Specification
Model Identification
Model Estimation
Assessment of Model Fit
Model Re-specification

Step 1: Model Specification

SEM is a confirmatory technique and it
Needs a model that delineates the relationships among variables
Requires a model that is based on theory (Bollen & Long,
1993)

Step 1: Model Specification

Exogenous variables
Variables
whose causes are unknown and/or not included
in the
model
Variables that explain other variables in the model (i.e. independent
variables (IVs))
Endogenous variables
Variables that serve as DVs in a model
May also serve as IVs

Step 2: Model Identification

Model must be specified so that there are enough pieces of information to give
unique estimates for all parameters
SEM involves estimating unknown parameters (e.g., factor loadings, path
coefficients) based on known parameters (i.e., covariances)
Identification involves whether a unique solution for a model can be obtained
Requires more known vs. unknown parameters
Identification is a property of the model, not the data
Does not depend on sample size
i.e., if a model is not identified, it remains so regardless of whether the sample size is
100, 1000, 10,000, etc.

Step 3: Model Estimation

Over-identified models have infinite # of solutions.
Parameters need to be estimated based on a mathematical criterion.
Goal is to minimize differences between the observed and implied covariance
matrices.
Process begins with initial estimates- start values.
Is an iterative process will stop when a minimum fitting criterion
is
reached.
When
the difference between the observed and implied
covariance matrices are minimized

Step 4: Assessing Model Fit

Absolute fit
Relative (Comparative) fit

Common Absolute Fit Indices

Model X2*
Non-significant X2 (p>0.05) indicates good fit
Root Mean Squared Error of Approximation (RMSEA)
Acceptable fit < 0.10; good fit < 0.05
Goodness of Fit (GFI)
> 0.90 is considered good fit

Common Relative Fit Indices

Normed Fit Index (NFI)
Incremental Fit Index (IFI)
Comparative Fit Index (CFI)
All range 0-1
Generally, >0.90 is considered good

SEM Model Fit: Rules of

Will often see/hear reference to 0.90 or above indicating acceptable
Thumb
model fit, for indices such as GFI, CFI, NFI, etc.
Typically cite Bentler & Bonett (1980) for this assertation
Basis for this is rather thin (Lance et al., 2006)
What Bentler and Bonett (1980) actually said:
experience will be required to establish values of the indices that are
associated with various degrees of meaningfulness of results. In our
experience, models with overall fit indices of less than 0.90 can
usually be improved substantially (Bentler & Bonett, 1980, p. 600).

Step 5: Model Re-specification/Modification

Goal is to improve model fit changing the model to fit the data
Caveats
Modifications are post hoc & capitalize on chance!
General guidelines
Must be theoretically consistent
Must be replicated with new data

Evaluating Your
Model
Theoretical/clinical meaning

Residuals and implied correlations

Discrepancies between sample covariance matrix and

those implied by the model

Tests of path coefficients

Guiding principle

Direction, magnitude

Absence of numerical problems

Direction and magnitude of residuals

Pattern of standardized residuals (z-scores)