An introduction to model implied instrumental variables using two stage least squares (MIIV-2SLS) in structural equation models (SEMs).

ABSTRACT: Structural equation models (SEMs) are widely used to handle multiequation systems that involve latent variables, multiple indicators, and measurement error. Maximum likelihood (ML) and diagonally weighted least squares (DWLS) dominate the estimation of SEMs with continuous or categorical endogenous variables, respectively. When a model is correctly specified, ML and DWLS function well. But, in the face of incorrect structures or nonconvergence, their performance can seriously deteriorate. Model implied instrumental variable, two stage least squares (MIIV-2SLS) estimates and tests individual equations, is more robust to misspecifications, and is noniterative, thus avoiding nonconvergence. This article is an overview and tutorial on MIIV-2SLS. It reviews the six major steps in using MIIV-2SL

SUBMITTER: Bollen KA 

PROVIDER: S-EPMC8799757 | biostudies-literature | 2022 Oct

REPOSITORIES: biostudies-literature