cs.LGApr 18, 2026

Covariance-Based Structural Equation Modeling in Small-Sample Settings with p>np>n

Authors: Hiroki HasegawaAoba TamuraYukihiko Okada

Organizations: Graduate School of Science and Technology, University of Tsukuba, Tsukuba, Ibaraki, Japan · Institute of Systems and Information Engineering, University of Tsukuba, Tsukuba, Ibaraki, Japan · Tsukuba Institute for Advanced Research, University of Tsukuba, Tsukuba, Ibaraki, Japan · Center for Artificial Intelligence Research, University of Tsukuba, Tsukuba, Ibaraki, Japan

Abstract

Factor-based Structural Equation Modeling (SEM) relies on likelihood-based estimation assuming a nonsingular sample covariance matrix, which breaks down in small-sample settings with p>np>n. To address this, we propose a novel estimation principle that reformulates the covariance structure into self-covariance and cross-covariance components. The resulting framework defines a likelihood-based feasible set combined with a relative error constraint, enabling stable estimation in small-sample settings where p>np>n for sign and direction. Experiments on synthetic and real-world data show improved stability, particularly in recovering the sign and direction of structural parameters. These results extend covariance-based SEM to small-sample settings and provide practically useful directional information for decision-making.

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