English

Total-effect Test May Erroneously Reject So-called "Full" or "Complete" Mediation

Econometrics 2023-09-26 v2 Applications Methodology

Abstract

The procedure for establishing mediation, i.e., determining that an independent variable X affects a dependent variable Y through some mediator M, has been under debate. The classic causal steps require that a "total effect" be significant, now also known as statistically acknowledged. It has been shown that the total-effect test can erroneously reject competitive mediation and is superfluous for establishing complementary mediation. Little is known about the last type, indirect-only mediation, aka "full" or "complete" mediation, in which the indirect (ab) path passes the statistical partition test while the direct-and-remainder (d) path fails. This study 1) provides proof that the total-effect test can erroneously reject indirect-only mediation, including both sub-types, assuming least square estimation (LSE) F-test or Sobel test; 2) provides a simulation to duplicate the mathematical proofs and extend the conclusion to LAD-Z test; 3) provides two real-data examples, one for each sub-type, to illustrate the mathematical conclusion; 4) in view of the mathematical findings, proposes to revisit concepts, theories, and techniques of mediation analysis and other causal dissection analyses, and showcase a more comprehensive alternative, process-and-product analysis (PAPA).

Keywords

Cite

@article{arxiv.2309.08910,
  title  = {Total-effect Test May Erroneously Reject So-called "Full" or "Complete" Mediation},
  author = {Tingxuan Han and Luxi Zhang and Xinshu Zhao and Ke Deng},
  journal= {arXiv preprint arXiv:2309.08910},
  year   = {2023}
}
R2 v1 2026-06-28T12:23:24.270Z