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Structural Equation Modeling (SEM) to Represent Farmer Decisions

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Abstract:

In this chapter, a structural equation model (SEM) is specified, estimated, tested and modified. Subsequently, the results are presented and discussed in detail. Referring to modification, the SEM approach, taken here, includes a feedback mechanism to eventually improve the model. The basic approach of SEM is a confirmatory one, i.e., hypotheses are put forward and subsequently confirmed or rejected by the model without modifying the model. However, JĂ–RESKOG (1993) introduced a more concise differentiation between three different strategies for structural equation modeling. A strictly confirmatory strategy, the strategy of alternative models, and a model generating approach. Following the first strategy, in the purely confirmatory mode, the researcher hypothesizes one single model based on a theory.

Keywords: Structural Equation Modeling (SEM) to Represent Farmer Decisions

Document Type: Research Article

Publication date: January 1, 2009

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