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Automating the Selection of Model-Implied Instrumental Variables

Citation

Bollen, Kenneth A. & Bauer, Daniel J. (2004). Automating the Selection of Model-Implied Instrumental Variables. Sociological Methods & Research, 32(4), 425-452.

Abstract

Recently, interest has grown in the use of instrumental variables (IVs) in estimating factor analysis and latent variable models such as structural equations models. Bollen (1996) suggested a two-stage least squares (2SLS) technique that makes use of modelimplied IVs in estimating the measurement and latent variable models. Model-implied instrumental variables are the observed variables in the model that can serve as instrumental variables in a given equation. One difficulty inhibiting the practical use of the 2SLS estimator is identifying the model-implied IVs. The authors provide a simple procedure that identifies the model-implied IVs and a computer algorithm that can easily be implemented to automate the selection of IVs for simultaneous equations, factor analysis, and latent variable models.

URL

https://doi.org/10.1177/0049124103260341

Reference Type

Journal Article

Year Published

2004

Journal Title

Sociological Methods & Research

Author(s)

Bollen, Kenneth A.
Bauer, Daniel J.