# Presentation Outline. Structural Equation Modeling (SEM) for Dummies. What Is Structural Equation Modeling?

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1 Structural Equation Modeling (SEM) for Dummies Joseph J. Sudano, Jr., PhD Center for Health Care Research and Policy Case Western Reserve University at The MetroHealth System Presentation Outline Conceptual overview. What is SEM? Major applications. Advantages of using SEM. Terms, nomenclature, symbols and vocabulary. Shared characteristics among the various SEM techniques. Analytic examples and types of software. LISREL, Amos, and EQS. 2 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. 3 Advantages of SEM Compared to Multiple Regression More flexible assumptions. Uses CFA to reduce measurement error. Attractive graphical modeling interface. Testing models overall vs. individual coefficients. 4

2 What Are It s Advantages? Test models with multiple dependent variables. Ability to model mediating variables. Enables measurement of direct and indirect effects. Ability to model error terms. What Are It s Advantages? Test coefficients across multiple betweensubjects groups Ability to handle difficult data Time series with autocorrelated error Non-normal data Incomplete data 5 6 Terms, Nomenclature, Symbols, and Vocabulary (Not Necessarily in That Order) Terms, Nomenclature, Symbols, and Vocabulary 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 7 Experimental research independent and dependent variables. Non-experimental research predictor and criterion variables Exogenous Endogenous of external origin Outside the model of internal origin Inside the model 8

3 Terms, Nomenclature, Symbols, and Vocabulary Latent variable (factor or construct) Observed (manifest or indicator) variable Direct effects Reciprocal effects Correlation or covariance 9 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. 10 Multiple Regression and Confirmatory Factor Analysis Education Occupation Income Observed or manifest variables D1 Psychosocial health Latent construct or factor Hostility Hopelessness GHQ Self-rated health e1 e2 e3 e4 Education Causal Modeling or Path Analysis and Confirmatory Factor Analysis a= direct effect b+c=indirect Occupation Income D2 D1 c Psychosocial health D3 Hostility Hopelessness GHQ Self-rated health e1 e2 e3 e4 Singh-Manoux, Clark and Marmot Multiple measures of socio-economic position and psychosocial health: proximal and distal measures. 11 Singh-Manoux, Clark and Marmot Multiple measures of socio-economic position and psychosocial health: proximal and distal measures. 12

4 Terms, Nomenclature, Symbols, and Vocabulary What about effect size? Structural or path coefficients. Effect sizes calculated by the model estimation program. Come in two flavors: Standardized. Unstandardized. <0.2 Insignificant Small Moderate >0.8 Large <0.1 Small near 0.3 Medium near 0.5 Large Measures of Fit or Fit Indexes Goodness of fit tests: Based on predicted vs. observed covariances Same as above, but penalizing for lack of parsimony Comparing the given model with an alternative model Based on information theory Measures of Fit or Fit Indexes Centrality index (CI) Noncentrality index (DK) Relative non-centrality index (RNI) Comparative fit index (CFI) Bentler-Bonnett index (BBI) Incremental fit index (IFI) Normed fit index (NFI) 15 16

5 Measures of Fit or Fit Indexes Model chi-square Goodness of Fit Index (GFI) Adjusted goodness-of-fit index (AGFI) Root mean square residuals (RMSR or RMR) Standardized root mean square residual, standardized RMR (SRMR) Steps in SEM Specify the model. Determine whether the model is identified. Analyze the model. Evaluate model fit. Respecify the model and evaluate the fit of the revised model Second-order Factor Analysis Latent variable whose indicators are themselves latent variables It has no measured indicators, but some rules apply Example: Political orientation Political orientation e Attitude toward social issues Attitude toward the economy Attitude toward defense e e e Correlation Structure Model: A Circumplex???

6 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 Shared Characteristics of SEM Methods SEM allows distinctions between observed and latent variables. Basic statistic in SEM in the covariance. Can analyze other types of data like means. Not just for non-experimental data Shared Characteristics of SEM Methods View many standard statistical procedures as special cases of SEM. SEM is a large-sample technique. SEM Examples from the literature Statistical significance less important than for more standard techniques

7 Relationship of personality (neuroticism trait) and negative affectivity (distress) in selfassessment of health (somatic complaints). NA Trait and Complaints Conceptual Model Initial saturated conceptual model. Relationship of personality (neuroticism trait) and negative Final affectivity Reduced (distress) in self-assessment Model of health (somatic complaints). Final reduced model shown with standardized path coefficients. 25 Vassend and Skrondal Hwang et al Using structural equation model to explore occupational lead exposure pathways. Science of the Total Environment 284: Sheehan, T. Joseph Stress and low birth weight: a structural modeling approach using real life stressors. Soc Sci Med 47(10):

8 29 30 SEM model showing cross-sectional Poverty and unemployment relationships between poverty, alcohol use, alcoholrelated problems and alcohol dependence. Kahn, Murray and Barnes A structural equation model of the effect of poverty and unemployment on alcohol abuse. Addictive Behaviors 27:

9 Longitudinal model showing significant standardized path coefficients. Time 1 Time 2 Poverty and unemployment II 33 SEM for Dummies II (future) Real time software example LISREL or EQS Single example built from scratch using longitudinal data Just a bit more on identification Will include discussion of fit indexes Decomposition of direct and indirect effects. 34 SEM References Kline, Rex B Principles and Practice of Structural Equation Modeling. New York: The Guilford Press. (Multivariate Software, Inc.--EQS software.) (Home to the LISREL family of software.) 35

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