Structural equation models are often used to test a theory about relationships between theoretical constructs.
We give a short and non-technical account of the main issues involved in the translation of a theory to a structural
equation model and the fitting and testing of this model by empirical data. For a fuller account of these issues,
see Bollen (1989a), Jöreskog (1993) and other chapters in Bollen & Long (1993), and Jöreskog &
Aish (1994). In particular, we discuss issues of model evaluation and assessment of fit that we have only touched
upon in the examples of the previous chapters of the SIMPLIS
Finally, a brief guide to the interpretation of some of these measures is given.
Fitting and Testing
Detailed Assessment of Fit
If, on the basis of overall measures of fit or other considerations, it is concluded that the model does not
fit sufficiently well, one can examine the fit more closely to determine possible sources of the lack of fit. For
this purpose, fitted and standardized residuals and modification indices are useful.
Interpretation of fit measures