Within and between Estimates in Random-Effects Models: Advantages and Drawbacks of Correlated Random Effects and Hybrid Models. (March 2013)

• Record Type: Journal Article
• Authors: Schunck, Reinhard
• Is Part Of: Stata journal. Volume 13:Number 1(2013)
• Page Start: 65
• Page End: 76
• Publication Date: 2013-03
• Subjects: st0283 -- xtreg -- xtmixed -- multilevel data -- panel data -- fixed effects -- random effects -- correlated random effects -- hybrid model; Statistics -- Periodicals; Statistics -- Computer programs -- Periodicals; 001.422
• DOI: 10.1177/1536867X1301300105
• Languages: English
• ISSNs: 1536-867X

Abstract

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.