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Answer :
Direct effects and indirect effects are concepts used to understand the separate impacts of a factor on an outcome.
Direct effects refer to the immediate impact of a factor on the outcome, while indirect effects occur when the influence of a factor is transmitted through intermediate variables.
Decomposing effects into direct and indirect components is valuable in mediation analysis, path analysis, policy evaluation, marketing research, environmental studies, and economic analysis.
It helps to identify the direct relationship between cause and effect and explore the pathways through which the factor influences the outcome.
These effects help understand the mechanisms or channels through which the cause affects the outcome.
By decomposing effects into direct and indirect components, researchers gain insights into the underlying causal pathways and can assess the specific contributions of different factors or interventions.
This decomposition is applied in various fields, such as mediation analysis, path analysis, policy evaluation, marketing research, environmental studies, and economic analysis, to better understand the complex relationships between variables and outcomes.
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