the random effects model is more appropriate. Equivalence of fixed effects model and dummy variable regression Estimating a fixed effects model is equivalent to adding a dummy variable for each ...

This paper shows how the correlated random effects approach can be extended to linear panel data models when instrumental variables are needed and the panel is unbalanced. We obtain the algebraic ...

For balanced data, the two-way random effects model is estimated using the method of Fuller and Battese (1974), so in this case, the RANTWO option is equivalent to the FULLER option already existing ...