From the course: Panel Data Analysis Essential Training
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Multilevel models
From the course: Panel Data Analysis Essential Training
Multilevel models
- [Instructor] Advanced applications of panel data regression often involve multilevel models. These models are typically used to investigate data sets that have a hierarchical structure, and where observations are nested in one or multiple groups. An example might be individuals working in different teams that are themselves grouped into different business divisions. Another common example is education data. Pupils are located in classes that are located in schools, that themselves are located in different regions. The basic idea of all these models is that individuals going to the same school or company share a common environment, and that both the individual characteristics and the environmental characteristics matter in determining a particular outcome. For example, pupil grades. The previous examples don't require panel data per se just cross-sectional data that can be clustered into different levels. Interestingly, a…