Title

Effects of Ignoring Correlated Measurement Error in Structural Equation Models

Publication Type

Journal Article

Publication Date

9-1992

Abstract

The implications of ignoring correlated error on parameter estimates in some simple structural equation models are examined. Ignoring correlated measurement error not only affected the acceptability of a model based on goodness-of-fit measures, but also affected the parameter estimation. Ignoring within-construct correlated error does not affect the estimates of the structural parameter but overestimates the associated measurement parameters. It is shown analytically and empirically that ignoring positive between-construct correlated error overestimates the structural parameter linking the two constructs. The effects become more pronounced with decreasing reliability in measurement.

Discipline

Management Sciences and Quantitative Methods

Research Areas

Marketing

Publication

Educational and Psychological Measurement

Volume

52

Issue

3

First Page

549

Last Page

570

ISSN

0013-1644

Identifier

10.1177/0013164492052003005

Publisher

SAGE

Additional URL

http://dx.doi.org/10.1177/0013164492052003005