In 1986, Reuben Baron and David Kenny articulated a set of principles for detecting and evaluating mediation in a system of equations. The essential principles are, first, that the variables are all related by linear equations, which are estimated by fitting them to the data. Second, direct and indirect effects are computed by fitting two equations to the data: one with the mediator included and one with the mediator excluded. Significant change in the coefficients when the mediator is introduced is taken as evidence of mediation. The simplicity and plausibility of the Baron-Kenny method took
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