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Using Instrumental Variable Tests to Evaluate Model Specification in Latent Variable Structural Equation Models

Bibliographic Data

ID8019709
AuthorsJames B Kirby (0000-0001-8491-6072, Agency for Healthcare Research and Quality), K A Bollen (0000-0002-6710-3800, University of North Carolina at Chapel Hill)
Year2009
Volume39
Issue1
Pages327-355
Publication date2009-07-02
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueSociological Methodology (JOURNAL)
Journal identifiersISSN: 0081-1750 • E-ISSN: 1467-9531
PublisherSAGE Publishing (PUBLISHER • US)
DOI10.1111/j.1467-9531.2009.01217.x
PMID20419054
OpenAlexW2066903130
LanguageEN
Citations received13
References cited23

Structural equation modeling (SEM) with latent variables is a powerful tool for social and behavioral scientists, combining many of the strengths of psychometrics and econometrics into a single framework. The most common estimator for SEM is the full-information maximum likelihood (ML) estimator, but there is continuing interest in limited information estimators because of their distributional robustness and their greater resistance to structural specification errors. However, the literature discussing model fit for limited information estimators for latent variable models is sparse compared with that for full-information estimators. We address this shortcoming by providing several specification tests basedon the 2SLS estimator for latent variable structural equation models developed by Bollen (1996). We explain how these tests can be used not only to identify a misspecified model but to help diagnose the source of misspecification within a model. We present and discuss results from a Monte Carlo experiment designed to evaluate the finite sample properties of these tests. Our findings suggest that the 2SLS tests successfully identify most misspecified models, even those with modest misspecification, and that they provide researchers with information that can help diagnose the source of misspecification

Econometrics · Estimator · Instrumental variable · Latent variable · Latent variable model · Machine learning · Monte Carlo method · Robustness (evolution · Specification · Statistics · Structural equation modeling · Variable (mathematics · Behavioral Health and Interventions · Computer Science · Mathematics · Psychometric Methodologies and Testing · Statistical Methods and Bayesian Inference

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Unique citing works13
Citations per year0,93
Citation span2012 - 2025 (14)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 13

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