clear
set obs 1000
set seed 123
gen e=rnormal()
gen x1=runiform()
gen x2=runiform()
gen x3=runiform()>=0.5
gen v=rnormal()
gen y = 1+ 0.1*x1 + 0.5*x2 + x3 + e
gen w = 2.0*y + x1 + v
sem (y
clear
set obs 1000
set seed 123
gen e=rnormal()
gen x1=runiform()
gen x2=runiform()
gen x3=runiform()>=0.5
gen v=rnormal()
gen y = 1+ 0.1*x1 + 0.5*x2 + x3 + e
gen w = 2.0*y + x1 + v
sem (y <- x1 x2 x3) (w <- y x1, nocons)