Within and between estimates in random-effects models: Advantages and drawbacks of correlated random effects and hybrid models

Correlated random-effects (Mundlak, 1978, Econometrica 46: 69–85; Wooldridge, 2010, Econometric Analysis of Cross Section and Panel Data [MIT Press]) and hybrid models (Allison, 2009, Fixed Effects Regression Models [Sage]) are attractive alternatives to standard random-effects and fixed-effects models because they provide within estimates of level 1 variables and allow for the inclusion of level 2 variables. I discuss these models, give estimation examples, and address some complications that arise when interaction effects are included.


Issue Date:
2013
Publication Type:
Journal Article
DOI and Other Identifiers:
st0283 (Other)
Record Identifier:
http://ageconsearch.umn.edu/record/241328
PURL Identifier:
http://purl.umn.edu/241328
Published in:
Stata Journal, 13, 1
Page range:
65-76
Total Pages:
14

Record appears in:



 Record created 2017-04-01, last modified 2018-11-28

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