STRUCTURAL EQUATION MODELS WITH CONTINUOUS AND POLYTOMOUS VARIABLES

A two-stage procedure is developed for analyzing structural equation models with continuous and polytomous variables. At the first stage, the maximum likelihood estimates of the thresholds, polychoric covariances and variances, and polyserial covariances are simultaneously obtained with the help of an appropriate transformation that significantly simplifies the computation. An asymptotic covariance matrix of the estimates is also computed. At the second stage, the parameters in the structural covariance model are obtained via the generalized least squares approach. Basic statistical properties of the estimates are derived and some illustrative examples and a small simulation study are reported.