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42  n  CAUSAL MoDELInG



                                                    are  used  to  describe  the  latent  variables.
                  Causal Modeling                   Exogenous variables are those whose causes
   C                                                are not represented in the model; the causes
                                                    of the endogenous variables are represented
           Causal  modeling  refers  to  a  class  of  theo-  in the model.
           retical  and  methodological  techniques  for   Causal  models  contain  two  different
           examining  cause-and-effect  relationships,   structures. The measurement model includes
           generally  with  nonexperimental  data.  Path   the latent variables, their empirical indicators
           analysis,  structural  equation  modeling,   (observed variables), and the associated error
           covariance structure modeling, and LISREL   variances. The measurement model is based
           modeling  have  slightly  different  meanings   on the factor analysis model. A respondent’s
           but often are used interchangeably with the   position  on  the  latent  variables  is  consid-
           term  causal  modeling.  Path  analysis  usu-  ered to cause the observed responses on the
           ally refers to a model that contains observed   empirical  indicators,  so  arrows  point  from
           variables  rather  than  latent  (unobserved)   the  latent  variable  to  the  empirical  indica-
           variables  and  is  analyzed  with  multiple   tor. The part of the indicator that cannot be
           regression procedures. The other three terms   explained by the latent variable is the error
           generally  refer  to  models  with  latent  vari-  variance generally due to measurement.
           ables with multiple empirical indicators that   The structural model specifies the rela-
           are analyzed with iterative programs such as   tionships  among  the  latent  concepts  and  is
           LISREL or EQS. A common misconception is   based on the regression model. Each of the
           that  these  models  can  be  used  to  establish   endogenous  variables  has  an  associated
           causality  with  nonexperimental  data;  how-  explained  variance,  similar  to  R  in mul-
                                                                                 2
           ever, statistical techniques cannot overcome   tiple  regression.  The  paths  between  latent
           restrictions imposed by the study’s design.   variables  represent  hypotheses  about  the
           nonexperimental  data  provide  weak  evi-  relationship between the variables. The mul-
           dence of causality regardless of the analysis   tistage  nature  of  causal  models  allows  the
           techniques applied.                      researcher to divide the total effects of one
              A  causal  model  is  composed  of  latent   latent  variable  on  another  into  direct  and
           concepts and the hypothesized relationships   indirect effects. Direct effects represent one
           among  those  concepts.  The  researcher  con-  latent variable’s influence on another that is
           structs this model a priori on the basis of the-  not  transmitted  through  a  third  latent  var-
           oretical or research evidence for the direction   iable.  Indirect  effects  are  the  effects  of  one
           and  sign  of  the  proposed  effects.  Although   latent variable that are transmitted through
           the model can be based on the observed cor-  one or more mediating latent variables. Each
           relations  in  the  sample,  this  practice  is  not   latent variable can have many indirect effects
           recommended.  Empirically  derived  models   but only one direct effect on another latent
           capitalize  on  sample  variations  and  often   variable.
           contain paths that are not theoretically defen-  Causal models can be either recursive or
           sible; findings from empirically constructed   nonrecursive. Recursive models have arrows
           models  should  not  be  interpreted  without   that point in the same direction; there are no
           replication in another sample.           feedback loops or reciprocal causation paths.
              Most causal models contain two or more   nonrecursive  models  contain  one  or  more
           stages; they have independent variables, one   feedback loops or reciprocal causation paths.
           or more mediating variables, and the final out-  Feedback loops can exist between latent con-
           come variables. Because the mediating vari-  cepts or error terms.
           ables act as both independent and dependent   An  important  issue  for  nonrecursive
           variables, the terms exogenous and endogenous   models is identification status. Identification
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