An alternative procedure for estimating structural equations models is described. The two-stage procedure, Path Analysis of Covariance Matrix (PACM), separately estimates the measurement and structural models using standard least-squares procedures, PACM was empirically compared to simultaneous maximum likelihood estimation of measurement and structural models using LISREL. PACM produced results similar to LISREL in many cases; it also seems to have advantages when dealing with large-scale problems, model misspecifications, collinearity among indicators, and missing data. Index terms: causal models, confirmatory factor analysis, LISREL, path analysis, structural equations models.