Document Type

Working Paper

Date

10-1998

Language

English

Funder(s)

National Institute on Aging

Funding ID

P20-AG12837

Series

Aging Studies Program Paper Series

Disciplines

Economic Policy | Economics | Public Affairs, Public Policy and Public Administration | Public Policy

Description/Abstract

Incorporating random group effects has proven important to making correct statistical inferences about factors that only vary across groups. We note that it is possible to have more than one random effect in models using cross-sectional data and that these random effects could be correlated, unlike in the typical panel data situation. Extending the standard multiple random effects model in this way is greatly simplified by using the two-step estimator we develop. Our application to an elderly migration flow model provides an intuitive example of cross-correlated random group effects and demonstrates the ease of our estimator, as well as highlighting the empirical importance of controlling for random effects.

ISSN

1084-1695

Additional Information

Aging studies program paper no.15

Source

Local Input

Creative Commons License

Creative Commons Attribution 4.0 International License
This work is licensed under a Creative Commons Attribution 4.0 International License.

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