I would want to make a study about the influence of some regressors in the evaluation of the effects of increment of subsidy in an economic sector. I would use SEM (Structural Equation Model) to investigate the connections between the variables in a model with three equation (equation A, B, C).
Eq. A --> Value Added= f(Labour, investments, subsidies)
Eq. B --> Labour = f(Valued Added, investments, subsidies)
Eq. C --> Investment = f(Valued Added, Labour , subsidies)
In this first stage, I use a cross-section. Can SEM permit to understand the causality ad his direction between the different models and regressors?