Hello!
I am currently trying to bugfix a linear mix model. My sample comprises about 2000 observations (firms) which are nested as follows:
Level 1: nested in 9 industries (1 Digit SIC Code) or(!) 68 industries (2 digit SIC code)
Level 2: nested in 11 countries
Most of the modeled effects will be random.
Is it possible, that the number of industries / countries causes my model not to converge? (I somehow recall having read that about 20 clusters should be used?)
Best regards
Christian
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