Relationships between linear systems theory and covariance structure modeling (Q1072327)

It is shown that an important subset of linear systems theory (LST) can be represented as a special case of covariance structure modeling (CSM). Overviews of both LST and CSM are presented, along with an explanation and illustration of their relationship. Possible modifications and extensions of LST are described based on the more general framework of CSM. An LST model where all inputs, state variables, and outputs are latent variables is proposed. The potential use of CSM methodology to carry out model fitting, parameter estimation, and hypothesis testing for certain LST models is discussed.