where yt is a vector of the ten observable indicator variables, xt is a vector of the seven
exogenous observable variables that cause ηt
, Β, ГandΛare matrices of unknown
parameters to be estimated, ζt and ɛt are measurement errors. Figure 1 shows the general
structure of the MIMIC model (Buehn and Schneider, 2008). For descriptive information, see
Table 4.