EconPapers    
Economics at your fingertips  
 

Fixed and random effects models: making an informed choice

Andrew Bell (), Malcolm Fairbrother () and Kelvyn Jones ()
Additional contact information
Andrew Bell: University of Sheffield, ICOSS
Malcolm Fairbrother: Umeå University
Kelvyn Jones: University of Bristol

Quality & Quantity: International Journal of Methodology, 2019, vol. 53, issue 2, No 26, 1074 pages

Abstract: Abstract This paper assesses the options available to researchers analysing multilevel (including longitudinal) data, with the aim of supporting good methodological decision-making. Given the confusion in the literature about the key properties of fixed and random effects (FE and RE) models, we present these models’ capabilities and limitations. We also discuss the within-between RE model, sometimes misleadingly labelled a ‘hybrid’ model, showing that it is the most general of the three, with all the strengths of the other two. As such, and because it allows for important extensions—notably random slopes—we argue it should be used (as a starting point at least) in all multilevel analyses. We develop the argument through simulations, evaluating how these models cope with some likely mis-specifications. These simulations reveal that (1) failing to include random slopes can generate anti-conservative standard errors, and (2) assuming random intercepts are Normally distributed, when they are not, introduces only modest biases. These results strengthen the case for the use of, and need for, these models.

Keywords: Multilevel models; Fixed effects; Random effects; Mundlak; Hybrid models; Within and between effects (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s11135-018-0802-x Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:qualqt:v:53:y:2019:i:2:d:10.1007_s11135-018-0802-x

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/11135

DOI: 10.1007/s11135-018-0802-x

Access Statistics for this article

Quality & Quantity: International Journal of Methodology is currently edited by Vittorio Capecchi

More articles in Quality & Quantity: International Journal of Methodology from Springer
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2020-04-28
Handle: RePEc:spr:qualqt:v:53:y:2019:i:2:d:10.1007_s11135-018-0802-x