Developing a Causal Model Using SEM

Abstract

SEM is a statistical technique for testing and estimating causal relations using a combination of statistical data and qualitative causal assumptions. This definition of SEM was articulated by the geneticist ‘Sewall Wright’ (1921), the economist ‘Trygve Haavelmo’ (1943) and the cognitive scientist ‘Herbert Simon’ (1953) and formally defined by ‘Judea Pearl’ (2000) using a calculus of counterfactuals.