(Why) Should We Use SEM? Pros and Cons of Structural Equation Modeling

During the last two decades, Structural Equation Modeling (SEM) has evolved from a statistical technique for insiders to an established valuable tool for a broad scientific public. This class of analyses has much to offer, but at what price? This paper provides an overview on SEM, its underlying ideas, potential applications and current software. Furthermore, it discusses avoidable pitfalls as well as built-in drawbacks in order to lend support to researchers in deciding whether or not SEM should be integrated into their research tools. Commented findings of an internet survey give a “State of the Union Address” on SEM users and usage. Which kinds of models are preferred? Which software is favoured in current psychological research? In order to assist the reader on his first steps, a SEM first-aid kit is included. Typical problems and possible solutions are addressed, helping the reader to get the support he needs. Hence, the paper may assist the novice on the first steps and self-critically reminds the advanced reader of the limitations of Structural Equation Modeling