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2010 Apr 09
0
panel regression with twoways random effects, on unbalanced data?
...s suggested in ?Econometrics in R? [1]. But what would be the correct lme() syntax for a twoways RE model? For example, library("AER") library("plm") data("Grunfeld", package = "AER") pgr <- plm.data(Grunfeld, index = c("firm", "year")) gr_re <- plm(invest ~ value + capital, data = pgr, model = "random", effect="individual") gr_lme <- lme(invest ~ value + capital, Grunfeld, random=~1|firm) summary(gr_re) summary(gr_lme) For this "individual" RE model, both plm() and lme() yield apparently similar r...