Interactions between (multiple indicator) latent variables are rarely used because of implementation complexity and competing strategies. Based on 4 simulation studies, the traditional constrained approach performed more poorly than did 3 new approaches--unconstrained, generalized appended product indicator, and quasi-maximum-likelihood (QML). The authors' new unconstrained approach was easiest to apply. All 4 approaches were relatively unbiased for normally distributed indicators, but the constrained and QML approaches were more biased for nonnormal data; the size and direction of the bias varied with the distribution but not with the sample size. QML had more power, but this advantage was qualified by consistently higher Type I error rates. The authors also compared general strategies for defining product indicators to represent the latent interaction factor.
Mediation analysis is important for research in psychology and other social and behavioral sciences. Great progress has been made in testing mediation effects and in constructing their confidence intervals. Mediation effect sizes have also been considered. Preacher and Kelley (2011) proposed and recommended κ² as an effect size measure for a mediation effect. In this article, we argue that κ² is not an appropriate effect size measure for mediation models, because of its lack of the property of rank preservation (e.g., the magnitude of κ² may decrease when the mediation effect that κ² represents increases). Furthermore, κ² can lead to paradoxical results in multiple mediation models. We show that the problem of κ² is due to (a) the improper calculation of the maximum possible value of the indirect effect, and (b) mathematically, the maximum possible indirect effect is infinity, implying that the definition of κ² is mathematically incorrect. At this time, it appears that the traditional mediation effect size measure PM (the ratio of the indirect effect to the total effect), together with some other statistical information, should be preferred for basic mediation models. But for inconsistent mediation models where the indirect effect and the direct effect have opposite signs, the situation is less clear. Other considerations and suggestions for future research are also discussed.
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