A cynical view of SEMs

It is all too common for a box and arrow diagram to be cobbled together in an afternoon and christened a “theory of change”. One formalised version of such a diagram is a structural equation model (SEM), the arrows of which are annotated with coefficients estimated using data. Here is John Fox (2002) on SEM and informal boxology:

“A cynical view of SEMs is that their popularity in the social sciences reflects the legitimacy that the models appear to lend to causal interpretation of observational data, when in fact such interpretation is no less problematic than for other kinds of regression models applied to observational data. A more charitable interpretation is that SEMs are close to the kind of informal thinking about causal relationships that is common in social-science theorizing, and that, therefore, these models facilitate translating such theories into data analysis.”


Fox, J. (2002). Structural Equation Models: Appendix to An R and S-PLUS Companion to Applied Regression. Last corrected 2006.