After consulting multiple people, here are some advice I received that helped me decide which approach to take. Ultimately, it goes back to the research question and the hypotheses made.
If we were interested in the unique contribution of A
to B
, over and above current and past wellbeing
, we could run hierarchical regression. There will be plenty of overlapping variance explained by current and past wellbeing
, but entering them in separate steps can help us understand the unique contribution of either to B
. In our case, we first entered wellbeing
at Time-1, followed by wellbeing
at Time-2. Even though Time-1 wellbeing
explained a great deal of the variance in B
, it was no longer a significant predictor when we entered Time-2 wellbeing
. This suggests that current, rather than past wellbeing
is a more important contributing factor. We entered A
in the final step, and it made significant improvement to the model with Time-1 and Time-2 wellbeing
in it, and this supports our initial hypothesis.
If we were interested in how the change in wellbeing
from Time-1 to Time-2 predicts B
, we could compute the difference scores, or use more elaborate latent change score models to account for the repeatedly measured nature of wellbeing
. A couple of useful resources for this approach: McArdle's 2009 review paper, Cambridge Powerpoint slides with examples and Mplus syntax
A
is a predictor ofB
, over and above the contribution ofwellbeing
measured at either time point. Multiple regression seems to be able to answer that, but not sure whether it's the best approach... $\endgroup$