Three-Level Dynamic Structural Equation Modeling

In this paper, we describe a three level dynamic structural modeling framework as a generalization of the DSEM framework of Asparouhov et al. Model estimation is discussed and the framework is illustrated with simulation studies and practical examples. Two common scenarios are described. The first is intensive longitudinal data for a group of individuals where observations are nested within days, periods, waves or bursts. The second is intensive longitudinal data for individuals nested within higher level clusters. Comparisons are made with two-level DSEM models and emphasis is given to what can be learned from the additional level of clustering.