Applied Structural

Equation Modeling
for Dummies, by Dummies
February 22, 2013
Indiana University, Bloomington
Joseph J. Sudano, Jr., PhD
Center for Health Care Research and Policy
Case Western Reserve University at The MetroHealth System

Adam T. Perzynski, PhD
Center for Health Care Research and Policy
Case Western Reserve University at The MetroHealth System


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Thanks So Much!!
Acknowledgements:
Bill Pridemore PhD
Adam Perzynski PhD
David W. Baker MD
Randy Cebul MD
Fred Wolinsky PhD

No conflicts of interest (but I wish there
were some major financial ones!)


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Presentation Outline
Conceptual overview.
What is SEM?
Basic idea underpinning SEM
Major applications
Shared characteristics among SEM techniques
Terms, nomenclature, symbols, vocabulary
Basic SEM example
Sample size, other issues and model fit
Software and texts
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What Is Structural Equation Modeling?
SEM: very general, very powerful
multivariate technique.
Specialized versions of other analysis
methods.
Major applications of SEM:
Causal modeling or path analysis.
Confirmatory factor analysis (CFA).
Second order factor analysis.
Covariance structure models.
Correlation structure models.
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Advantages of SEM Compared to
Multiple Regression
More flexible modeling

Uses CFA to correct for measurement error

Attractive graphical modeling interface

Testing models overall vs. individual
coefficients

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What are its Advantages?
Test models with multiple dependent
variables

Ability to model mediating variables

Ability to model error terms
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What are its Advantages?
Test coefficients across multiple between-
subjects groups

Ability to handle difficult data
Longitudinal with auto-correlated error
Multi-level data
Non-normal data
Incomplete data
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Shared Characteristics of SEM Methods
SEM is a priori
Think in terms of models and
hypotheses
Forces the investigator to provide lots
of information
which variables affect others
directionality of effect

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Shared Characteristics of SEM Methods
SEM allows distinctions between
observed and latent variables
Basic statistic in SEM in the covariance
Not just for non-experimental data
View many standard statistical
procedures as special cases of SEM
Statistical significance less important
than for more standard techniques
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Terms, Nomenclature, Symbols, and
Vocabulary (Not Necessarily in That Order)
Variance = s
2

Standard deviation = s
Correlation = r
Covariance = s
XY
= COV(X,Y)
Disturbance = D
X Y D
Measurement error = e or E
A X E
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Terms, Nomenclature, Symbols,
and Vocabulary
Observed (or manifest)

Latent (or factors)
Experimental research
independent and dependent variables.
Non-experimental research
predictor and criterion variables
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Terms, Nomenclature, Symbols,
and Vocabulary
of external origin
Outside the model
of internal origin
Inside the model
Exogenous

Endogenous

Direct effects
Reciprocal effects
Correlation or
covariance
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Terms, Nomenclature, Symbols,
and Vocabulary
Measurement model
That part of a SEM model dealing with
latent variables and indicators.

Structural model
Contrasted with the above
Set of exogenous and endogenous
variables in the model with arrows and
disturbance terms
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Measurement Model: Confirmatory Factor Analysis
GHQ
Hostility
Hopelessness
Self-rated health
Psychosocial
health
D1
e4
e3
e2
e1
Singh-Manoux, Clark and Marmot. 2002. Multiple measures of socio-economic
position and psychosocial health: proximal and distal measures.
Latent construct or factor
Observed or manifest variables
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Structural Model with Additional Variables
GHQ
Hostility
Hopelessness
Income
Occupation
Education
Self-rated health
Psychosocial
health
D1
e4
e3
e2
e1
Singh-Manoux, Clark and Marmot. 2002. Multiple measures of socio-economic
position and psychosocial health: proximal and distal measures.
Latent construct or factor
Observed or manifest variables
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Causal Modeling or Path Analysis and
Confirmatory Factor Analysis
GHQ
Hostility
Hopelessness
Occupation
Income
Education
Self-rated health
Psychosocial
health
D3
e4
e3
e2
e1
Singh-Manoux, Clark and Marmot. 2002. Multiple measures of socio-economic
position and psychosocial health: proximal and distal measures.
D1
D2
a= direct effect
c
b+c=indirect
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What Sample Size is Enough
for SEM?
The same as for regression*
More is pretty much always better
Some fit indexes are sensitive to small
samples


*Unless you do things that are fancy!
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Whats a Good Model?
Fit measures:
Chi-square test
CFI (Comparative Fit Index)
RMSE (Root Mean Square Error)
TLI (Tucker Lewis Index)
GFI (Goodness of Fit Index)
And many, many, many more
IFI, NFI, AIC, CIAC, BIC, BCC


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How Many Indicators Do I Need?
That depends
How many do you have? (e.g.,
secondary data analysis)
A prior concerns
Scale development standards
Subject burden
More is often NOT better

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Software
LISREL 9.1 from SSI (Scientific
Software International)
IBMs SPSS Amos
EQS (Multivariate Software)
Mplus (Linda and Bengt Muthen)
CALIS (module from SAS)
Statas new sem module
R (lavaan and sem modules)

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SPSS Amos Screenshot
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Stata Screenshot
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Texts (and a reference)
Barbara M. Byrne (2012): Structural Equation Modeling with
Mplus, Routledge Press
She also has an earlier work using Amos
Rex Kline (2010): Principles and Practice of Structural Equation
Modeling, Guilford Press
Niels Blunch (2012): Introduction to Structural Equation Modeling
Using IBM SPSS Statistics and Amos, Sage Publications
James L. Arbuckle (2012): IBM SPSS Amos 21 Users Guide,
IBM Corporation (free from the Web)
Rick H. Hoyle (2012): Handbook of Structural Equation
Modeling, Guilford Press
Great fit index site:
http://www.psych-it.com.au/Psychlopedia/article.asp?id=277
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Thanks So Much Again!!
Questions????


jsudano@metrohealth.org