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An iterative method for the computation of the correlation matrix implied by a recursive path model

Author

Listed:
  • M’barek Iaousse

    (Ibn Tofail University)

  • Zouhair El Hadri

    (Mohammed V University)

  • Amal Hmimou

    (Ibn Tofail University)

  • Yousfi El Kettani

    (Ibn Tofail University)

Abstract

In Path Analysis, especially in social sciences studies, many researchers usually assume that errors in the model are uncorrelated with all exogenous variables as well as with each other. These assumptions, in most cases, are not valid in reality and were introduced to facilitate the model estimation. This article establishes a new algorithm for the computation of the correlation matrix implied by a recursive path model that overcomes these drawbacks. We compare our algorithm to two other methods used in the literature. The comparison was made mathematically through an illustrated example and numerically with a simulation study. The findings show that, unlike the classical methods, the proposed method gives more accurate results.

Suggested Citation

  • M’barek Iaousse & Zouhair El Hadri & Amal Hmimou & Yousfi El Kettani, 2021. "An iterative method for the computation of the correlation matrix implied by a recursive path model," Quality & Quantity: International Journal of Methodology, Springer, vol. 55(3), pages 897-915, June.
    • Handle: RePEc:spr:qualqt:v:55:y:2021:i:3:d:10.1007_s11135-020-01034-1
    DOI: 10.1007/s11135-020-01034-1
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    References listed on IDEAS

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    1. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, April.
    2. Yau, Linda H. -Y. & Lee, Sik-Yum & Poon, Wai-Yin, 1993. "Covariance structure analysis with three-level data," Computational Statistics & Data Analysis, Elsevier, vol. 15(2), pages 159-178, February.
    3. Jamshidian, Mortaza & Bentler, Peter M., 1993. "A modified Newton method for constrained estimation in covariance structure analysis," Computational Statistics & Data Analysis, Elsevier, vol. 15(2), pages 133-146, February.
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    Cited by:

    1. Ibrahim Kabir & Yazid Abubakar Abdullahi & M Muzamil Naqshbandi, 2023. "Measuring entrepreneurial orientation and institutional theory for informal enterprises: scale validation," Quality & Quantity: International Journal of Methodology, Springer, vol. 57(2), pages 1439-1463, April.

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