IDEAS home Printed from https://ideas.repec.org/a/tsj/stataj/v13y2013i1p65-76.html
   My bibliography  Save this article

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

Author

Listed:
  • Reinhard Schunck

    (University of Bielefeld)

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. Copyright 2013 by StataCorp LP.

Suggested Citation

  • Reinhard Schunck, 2013. "Within and between estimates in random-effects models: Advantages and drawbacks of correlated random effects and hybrid models," Stata Journal, StataCorp LP, vol. 13(1), pages 65-76, March.
    • Handle: RePEc:tsj:stataj:v:13:y:2013:i:1:p:65-76
    Note: to access software from within Stata, net describe http://www.stata-journal.com/software/sj13-1/st0283/
    as

    Download full text from publisher

    File URL: http://www.stata-journal.com/article.html?article=st0283
    File Function: link to article purchase
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jason Abrevaya, 2006. "Estimating the effect of smoking on birth outcomes using a matched panel data approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(4), pages 489-519, May.
    2. Robert L. Kaufman, 1993. "Decomposing Longitudinal from Cross-Unit Effects in Panel and Pooled Cross-Sectional Designs," Sociological Methods & Research, , vol. 21(4), pages 482-504, May.
    3. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    4. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
    5. Hausman, Jerry A. & Taylor, William E., 1981. "A generalized specification test," Economics Letters, Elsevier, vol. 8(3), pages 239-245.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marco Giesselmann & Alexander Schmidt-Catran, 2018. "Interactions in Fixed Effects Regression Models," Discussion Papers of DIW Berlin 1748, DIW Berlin, German Institute for Economic Research.
    2. Brown, Sarah & Greene, William H. & Harris, Mark N. & Taylor, Karl, 2015. "An inverse hyperbolic sine heteroskedastic latent class panel tobit model: An application to modelling charitable donations," Economic Modelling, Elsevier, vol. 50(C), pages 228-236.
    3. Chen, Yi-Yi & Schmidt, Peter & Wang, Hung-Jen, 2014. "Consistent estimation of the fixed effects stochastic frontier model," Journal of Econometrics, Elsevier, vol. 181(2), pages 65-76.
    4. Tesfaye, Wondimagegn & Tirivayi, Nyasha, 2020. "Crop diversity, household welfare and consumption smoothing under risk: Evidence from rural Uganda," World Development, Elsevier, vol. 125(C).
    5. Nicole M. Mason & Thomas S. Jayne & Nicolas van de Walle, 2017. "The Political Economy of Fertilizer Subsidy Programs in Africa: Evidence from Zambia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(3), pages 705-731.
    6. Angelo Secchi & Federico Tamagni & Chiara Tomasi, 2016. "Financial constraints and firm exports: accounting for heterogeneity, self-selection, and endogeneity," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 25(5), pages 813-827.
    7. Josephson, Anna Leigh & Ricker-Gilbert, Jacob & Florax, Raymond J.G.M., 2014. "How does population density influence agricultural intensification and productivity? Evidence from Ethiopia," Food Policy, Elsevier, vol. 48(C), pages 142-152.
    8. Arnd Kölling & Claus Schnabel, 2022. "Owners, external managers and industrial relations in German establishments," British Journal of Industrial Relations, London School of Economics, vol. 60(2), pages 424-443, June.
    9. Erika Raquel Badillo & Rosina Moreno, 2016. "Are Collaborative Agreements in Innovation Activities Persistent at the Firm Level? Empirical Evidence for the Spanish Case," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 49(1), pages 71-101, August.
    10. Vigren, Andreas, 2020. "The Distance Factor in Swedish Bus Contracts How far are operators willing to go?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 188-204.
    11. Richard Bluhm & Martin Gassebner & Sarah Langlotz & Paul Schaudt, 2021. "Fueling conflict? (De)escalation and bilateral aid," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 36(2), pages 244-261, March.
    12. Nadjia Mehraban & Christoph Kubitza & Zulkifli Alamsyah & Matin Qaim, 2021. "Oil palm cultivation, household welfare, and exposure to economic risk in the Indonesian small farm sector," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(3), pages 901-915, September.
    13. Adjognon, Serge G. & Liverpool-Tasie, Lenis Saweda O. & Reardon, Thomas A., 2017. "Agricultural input credit in Sub-Saharan Africa: Telling myth from facts," Food Policy, Elsevier, vol. 67(C), pages 93-105.
    14. Kijima, Yoko & Tabetando, Rayner, 2020. "Efficiency and equity of rural land markets and the impact on income: Evidence in Kenya and Uganda from 2003 to 2015," Land Use Policy, Elsevier, vol. 91(C).
    15. Maggie Xiaoyang Chen & Aaditya Mattoo, 2008. "Regionalism in standards: good or bad for trade?," Canadian Journal of Economics, Canadian Economics Association, vol. 41(3), pages 838-863, August.
    16. Robert E. Martin & R. Carter Hill & Melissa S. Waters, 2017. "Baumol and Bowen Cost Effects in Research Universities," Departmental Working Papers 2017-03, Department of Economics, Louisiana State University.
    17. Fujimoto, Takefumi & Suzuki, Aya, 2021. "Do Fertilizer and Seed Subsidies Strengthen Farmers' Market Participation? the Impact of Tanzania NAIVS on Farmers' Purchase of Agricultural Inputs and Their Maize-Selling Activities," 2021 Conference, August 17-31, 2021, Virtual 315044, International Association of Agricultural Economists.
    18. Kere, Eric Nazindigouba & Choumert, Johanna & Combes Motel, Pascale & Combes, Jean Louis & Santoni, Olivier & Schwartz, Sonia, 2017. "Addressing Contextual and Location Biases in the Assessment of Protected Areas Effectiveness on Deforestation in the Brazilian Amazônia," Ecological Economics, Elsevier, vol. 136(C), pages 148-158.
    19. Ricker-Gilbert, Jacob & Jones, Michael, 2015. "Does storage technology affect adoption of improved maize varieties in Africa? Insights from Malawi’s input subsidy program," Food Policy, Elsevier, vol. 50(C), pages 92-105.
    20. Charles Yaw Okyere & Ama Asantewah Ahene-Codjoe, 2022. "Irrigated Agriculture and Welfare: Panel Data Evidence from Southern Ghana," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(2), pages 583-610, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tsj:stataj:v:13:y:2013:i:1:p:65-76. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christopher F. Baum or Lisa Gilmore (email available below). General contact details of provider: http://www.stata-journal.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.