General guidance for custom-built structural equation models

Structural Equation Modeling (SEM) represents a quantitative methodology for specifying and evaluating causal network hypotheses. The application of SEM typically involves the use of specialized software packages that implement estimation procedures and automate model checking and the output of summary results. There are times when the specification details an investigator wishes to implement to represent their data relationships are not supported by available SEM packages. In such cases, it may be desirable to develop and evaluate SE models “by hand”, using specialized regression tools. In this paper, I demonstrate a general approach to custom-built applications of SEM. The approach illustrated can be used for a wide array of specialized applications of non-linear, multi-level, and other custom specifications in SE models.