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 Daniel Arad posted on Saturday, November 28, 2009 - 10:44 pm
I want to run the following MIMIC type model of labor supply with a latent variable

modern by y1 y2 y3 y4
modern on c x1 x2
labor ON c modern x1 x2 x3 x4

The latent variable modern is a continuous variable

labor is the dependent variable of interest and is binary

The ys are binary indicators; c is a constant; x1, x3 are vectors of binary variables; x2, x4 are vectors of continuous variables

My questions are:

a. Is the above formulation correct in terms of MPlus?
b. Are there limitations on the ys and xs I can put in?
c. Are there restrictions I should be imposing?
 Bengt O. Muthen posted on Sunday, November 29, 2009 - 5:02 pm
a. You don't include the constant c as a variable. If c=1, that would imply an intercept which you get by default in Mplus.

b. No important ones that I can think of.

c. No.
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