2018
DOI: 10.1080/00273171.2018.1483224
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Model Implied Instrumental Variables (MIIVs): An Alternative Orientation to Structural Equation Modeling

Abstract: Few dispute that our models are approximations to reality. Yet when it comes to structural equation models (SEMs), we use estimators that assume true models (e.g. maximum likelihood) and that can create biased estimates when the model is inexact. This article presents an overview of the Model Implied Instrumental Variable (MIIV) approach to SEMs from Bollen (1996). The MIIV estimator using Two Stage Least Squares (2SLS), MIIV-2SLS, has greater robustness to structural misspecifications than system wide estimat… Show more

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Cited by 55 publications
(50 citation statements)
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“…Several emerging methodologies, many from outside the management literature, have been proposed for instrumental variable approaches (e.g., Maydeu-Olivares et al, 2020). One is using instrumental variables in SEM contexts through model-implied instrumental variables (MIIVs; Bollen, 1996; 2019). Typical instrumental variables are external to the model—what Bollen (2012) calls auxiliary variables .…”
Section: Endogeneity: Causes and Associated Solutions In The Literaturementioning
confidence: 99%
“…Several emerging methodologies, many from outside the management literature, have been proposed for instrumental variable approaches (e.g., Maydeu-Olivares et al, 2020). One is using instrumental variables in SEM contexts through model-implied instrumental variables (MIIVs; Bollen, 1996; 2019). Typical instrumental variables are external to the model—what Bollen (2012) calls auxiliary variables .…”
Section: Endogeneity: Causes and Associated Solutions In The Literaturementioning
confidence: 99%
“…(3) Inferring that one or more parameter estimates are unbiased (true) estimates of causal effects constitutes a stricter assumption. Both omitted confounders and measurement error, along with a host of more technical issues, can bias estimates to various degrees (though remedies to even these challenges exist; Bollen ). For these reasons, appropriate caution is required when drawing conclusions.…”
Section: Interpretations and Considerationsmentioning
confidence: 99%
“…The most important question is how well a researcher can control it? Among the several attempts that have been shown empirically to yield satisfactory performance in controlling for an extraneous variable, such as C in non-experimental research, is the use of instrumental variable approach ( Antonakis et al, 2010 ; Bollen, 2019 ). The basic idea of the instrumental variable approach is to find a fourth variable called an instrument that satisfies some properties (which will be explained in the “Materials and Methods” section) and use it to discern the actual effect of A on B from any confounding effects of C ( Greenland, 2000 ; Bollen, 2019 ).…”
Section: Introductionmentioning
confidence: 99%