Cluster effects and simultaneity in multilevel models
Richard Blundell () and
Frank Windmeijer
Health Economics, 1997, vol. 6, issue 4, 439-443
Abstract:
For small group sizes, the GLS estimator in multilevel models is biased and inconsistent when the random cluster effects are correlated with the regressors. A fixed effects approach, conditioning on the cluster effects, provides consistent estimates for the slope parameters. The two estimators are equivalent when group sizes are large. The same results obtain for two‐stage estimation procedures that allow for some of the regressors to be simultaneously determined with the dependent variable. The GLS and fixed effects estimators are applied to data on acute care hospital utilization in the UK, allowing for health authority district effects. © 1997 John Wiley & Sons, Ltd.
Date: 1997
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)
Downloads: (external link)
https://doi.org/10.1002/(SICI)1099-1050(199707)6:43.0.CO;2-B
Related works:
Working Paper: Cluster effects and simultaneity in multilevel models (1997) 
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:wly:hlthec:v:6:y:1997:i:4:p:439-443
Access Statistics for this article
Health Economics is currently edited by Alan Maynard, John Hutton and Andrew Jones
More articles in Health Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().