Simultaneous Equation
Simultaneous Equation Model (SEM)
A Simultaneous Equation Model (SEM) is a set of linear simultaneous equations that represents a model. Two or more equations are used in SEM models. Changes in the response variable (Y) occur as a result of changes in the explanatory variable (X) in a single-equation model; in a SEM model, other Y variables are among the explanatory variables in each SEM equation. The equations in the system jointly determine the system; in other words, the X and Y variables display some sort of simultaneity or “back and forth” causation.
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