Model Implied Instrumental Variables: An Alternative Approach to Structural Equation Models (SEMs) (St. Gallen, Switzerland)


If our models were perfectly valid and our variables only came from normal distributions, the maximum likelihood and related estimators that dominate SEM software would be hard to beat. In reality, however, such structural and distributional assumptions are rarely if ever satisfied. This workshop will discuss more robust estimators that better represent real world conditions. Model Implied Instrumental Variable (MIIV) estimators are more robust to the approximate nature of our models and are asymptotically distribution free. In addition, they can test equation level fit so as to better localize model misspecification. The workshop will give an overview of the free R package MIIVsem. We will introduce the key ideas behind MIIV estimation; we will show how MIIVsem automates the selection of MIIVs, the estimation of coefficients and standard errors, and provides overidentification tests for equations. These and other features will be introduced and illustrated with a variety of empirical examples.

Software: We will provide instructions on downloading R and MIIVsem.

Prerequisites: Prior knowledge of SEM is assumed. No prior knowledge of MIIV methods is assumed.

Time: Note the special time for this workshop, 4:00pm to 7:00pm.

Dates: Please note the new course dates of June 5 and June 6.

Fee: There is no fee to attend this workshop, although all participants must register with the ICPSR Summer Program.

Tags: implied instrumental variables, structural equations, SEM

Course Sections