An empirical comparison of the efficacy of covariance-based and variance-based SEM

This chapter presents a review of applications of structural equation modeling (SEM) published in psychological research journals in recent years. We focus first on the variety of research designs and substantive issues to which SEM can be applied productively. We then discuss a number of methodological problems and issues of concern that characterize some of this literature. Although it is clear that SEM is a powerful tool that is being used to great benefit in psychological research, it is also clear that the applied SEM literature is characterized by some chronic problems and that this literature can be considerably improved by greater attention to these issues.