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 Chris M Manuel posted on Tuesday, April 01, 2014 - 12:20 pm
Hello, on page 11 of the technical appendix (version 3) and in the 1984 Psychometrika paper by Muthen, the structural system is defined as

eta=alpha+Beta*eta+gamma*x+zeta

Why is eta on both sides of the equation?

Thank you,
Chris
 Bengt O. Muthen posted on Wednesday, April 02, 2014 - 11:25 am
Because we want to do regressions between the different eta variables. Beta picks up those regression coefficients. The diagonal of the Beta matrix consists of zeros, so no eta variable is regressed on itself.
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