This article provides the theory and application of the 2-stage maximum likelihood (ML) procedure for structural equation modeling (SEM) with missing data. The validity of this procedure does not require the assumption of a normally distributed population. When the population is normally distributed and all missing data are missing at random…

Two major and two minor principles are shown to serve to generate a large number of multivariate models, including canonical analysis, factor analysis, and latent trait test theory. The statistical underpinnings of the theory are discussed. (Author/JKS)