Can one use simple variables in lieu of latent variables in SEM models?
• What are the advantages of SEM over OLS regression? Compared to OLS regression, structural equation modeling takes into account the modeling of interactions, nonlinearities, correlated independents, measurement error, correlated error terms, multiple latent independents each measured by multiple indicators, and one or more latent dependents also each with multiple indicators. • Given the advantages of SEM over OLS regression, when would one ever want to use OLS regression? Jaccard and Wan (1996: 80) state that regression may be preferred to structural equation modeling when there are substantial departures from the SEM assumptions of multivariate normality of the indicators and/or small sample sizes, and when measurement error is less of a concern because the measures have high reliability. • Is SEM the same as MLE? Can SEM use other estimation methods than MLE? SEM is a family of methods for testing models. MLE (maximum likelihood estimation) is the default method of estimating stru
