Application of Structural Equation Model in Synthesis Evaluation Index

Based on the structural equation model, a synthesis evaluation method is discussed. The relation between every latent variable and its corresponding o bserved variables is investigated and the relation between every latent variable and the multivariable evaluation index is analyzed with the proposed method. Therefore, the multivariable evaluation index which represents the latent variable s and observed variables is computed with this method. The urbanization development level model of Chinese cities adopted two variable sets which reflect economic level and living level, and structural equation model is applied for establishing city synthesis evaluation index. The result showed consistence with economi c geography.