Regression with complex causal structure - MathOverflow most recent 30 from http://mathoverflow.net 2013-05-21T15:55:35Z http://mathoverflow.net/feeds/question/88239 http://www.creativecommons.org/licenses/by-nc/2.5/rdf http://mathoverflow.net/questions/88239/regression-with-complex-causal-structure Regression with complex causal structure Zwingli 2012-02-11T22:53:00Z 2012-02-13T20:10:46Z <p>Hi , I have already run a whole bunch of OLS and found the following</p> <p>Regress P= B1*L+e_1, found b1&lt;0</p> <p>Regress X= B2*L+e_2, found b2>0</p> <p>Regress X= B3*P+e_3, found b3&lt;0</p> <p>I want to build a case with complex causal structure, in which there are two channels that L positively affects X.</p> <p>1.Reducing P increases X</p> <p>2.L positively affects X on its own</p> <p>3.In addition, L positively affects X through the effect that increasing L reduces P, and we know reducing P increases X, thus this is the second channel that L positively affects X.</p> <p>Two questions.</p> <p>A. What OLS or other type of regression equations[I guess it takes more than 1 equation] should I run to prove my case, ie, to prove (if not possible to prove, strongly suggest) this whole system of causal strucuture? </p> <p>B. What regression diagnostics should I use in SAS to show my logic behind the causal strcuture (L increases X through 2 channels )are ok?</p> <p>Thanks.</p> http://mathoverflow.net/questions/88239/regression-with-complex-causal-structure/88370#88370 Answer by magnetohydrodynamic for Regression with complex causal structure magnetohydrodynamic 2012-02-13T20:10:46Z 2012-02-13T20:10:46Z <p>You want to make a <a href="http://www.ssicentral.com/lisrel/techdocs/compsem.pdf" rel="nofollow">structural equation model</a>.</p>