Nonlinear sem: Comparison between endogenous and exogenous interaction
In many fields of research to study particular phenomena the analysis of model with interaction is very important. The interaction occurs when the effect of a variable on another variable varies with the varying of a third variable and vice versa. In the SEM analysis the interaction can create problems if the two cause-variables are endogenous, i.e. linked causally to other variables. In literature, only few authors examined the model with the interaction between endogenous variables but without a true analysis of the causal effects.