Wood P. Understanding Structural Equation Models..of Rel. Between Variables 2025

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The field of structural equation models (SEMs) is rapidly expanding. A researcher who wants to select and apply SEMs to their data faces several challenges: (1) They can often become extremely complex, with many parameters to estimate. Small samples or those with relatively few variables often cannot support this complexity reliably, leading to under-identified models, poor power, or unstable estimates; (2) Researchers must choose an appropriate measurement model, and these choices are not often well understood in advance; (3) No single “correct” SEM exists, although “better” ones do, and the existence of competing plausible alternatives is often overlooked; and (4) Critical examination of model assumptions involving the linearity of parameters and the existence of influential or outlying observations is often overlooked. This book provides an overview of SEMs as a flexible, skeptical, and iterative scientific process

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