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In recent years the loglinear model has become the dominant form of categorical data analysis as researchers have expanded it into new directions. This book shows researchers the applications of one of these new developments - how uniting ordinary loglinear analysis and latent class analysis into a general loglinear model with latent variables can result in a modified LISREL approach. This modified LISREL model will enable researchers to analyze categorical data in the same way that they have been able to use LISREL to analyze continuous data. Beginning with an introduction to ordinary loglinear modelling and standard latent class analysis, the author explains the general principles of loglinear modelling with latent variables, the application of loglinear models with latent variables as a causal model as well as a tool for the analysis of categorical longitudinal data, the strengths and limitations of this technique, and finally, a summary of computer programs that are available for executing this technique.