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New lights on the correlation matrix implied by a recursive path model

Author

Listed:
  • Seyid Abdellahi Ebnou Abdem

    (Faculty of Sciences Mohammed V University in Rabat)

  • Zouhair El Hadri

    (Faculty of Sciences Mohammed V University in Rabat)

  • M’barek Iaousse

    (Hassan II University of Casablanca)

Abstract

Path Analysis is a statistical method to study the causal relationships between observed variables. The specification and the estimation steps are crucial in the whole process. In fact, the relationships between variables and their status are specified. In addition, the model parameters are estimated based on the so-called correlation matrix implied by the model. Two methods are available to compute this matrix: Jöreskog’s method and the Finite Iterative Method. Many researchers recommend that the variances of the endogenous variables to be fixed. For instance, diagonal elements are equal to 1. As a consequence, the present paper aims to show that the two methods are identical. Furthermore, numerical studies and empirical simulations illustrating the advantages of this recommendation are also given.

Suggested Citation

  • Seyid Abdellahi Ebnou Abdem & Zouhair El Hadri & M’barek Iaousse, 2024. "New lights on the correlation matrix implied by a recursive path model," Quality & Quantity: International Journal of Methodology, Springer, vol. 58(1), pages 119-139, February.
    • Handle: RePEc:spr:qualqt:v:58:y:2024:i:1:d:10.1007_s11135-023-01629-4
    DOI: 10.1007/s11135-023-01629-4
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    References listed on IDEAS

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    1. Zouhair El Hadri & M’barek Iaousse, 2022. "Computation of the covariance matrix implied by a recursive structural equation model with latent variables," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(6), pages 4295-4311, December.
    2. Enrico Ciavolino & Sergio Salvatore & Piergiorgio Mossi & Gloria Lagetto, 2019. "High-order PLS path model for multi-group analysis: the prosumership service quality model," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(5), pages 2371-2384, September.
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