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Bollen, Kenneth A.; Maydeu-Olivares, Albert – Psychometrika, 2007
This paper presents a new polychoric instrumental variable (PIV) estimator to use in structural equation models (SEMs) with categorical observed variables. The PIV estimator is a generalization of Bollen's (Psychometrika 61:109-121, 1996) 2SLS/IV estimator for continuous variables to categorical endogenous variables. We derive the PIV estimator…
Descriptors: Structural Equation Models, Simulation, Robustness (Statistics), Computation