I apologize for the naivete of this question, but I am wondering if I could get some advice and clarity on how to use an instrumental variables approach to dealing with a confounded / endogenous X variable in a structural equations setting? The endogenous X variable is dichotomous, the instruments are continuous, and I would like to use all of the exogenous X variables as predictors of the endogenous X variable as well.
Would I be correct in assuming that I can do this by simply writing the aforementioned structure into the model? If so, is this the most efficient way to go about setting up an instrumental variables analysis, or is there a more streamlined way to tell Mplus what it is I am trying to do?
As always, thank you very much in advance for your assistance in this matter!