New Blog 2: Structural Equation

Thursday, 8 November 2012

Structural Equation

Structural Equation Models (SEM) encourages confirmatory rather than exploratory modeling; thus, it is suited to theory testing rather than theory development. It usually starts with a hypothesis, represents it as a model, operationalises the constructs of interest with a measurement instrument, and tests the model. The causal assumptions embedded in the model often have falsifiable implications which can be tested against the data. With an accepted theory or otherwise confirmed model, SEM can also be used inductively by specifying the model and using data to estimate the values of free parameters. Often the initial hypothesis requires adjustment in light of model evidence, but SEM is rarely used purely for exploration.