Re: st: random coefficient model for cross-sectional data?

[Maarten buis <maartenbuis@yahoo.co.uk>]

--- On Tue, 15/3/11, Mary E. Mackesy-Amiti wrote:
> In order to have random effects there has to be
> variability within the unit of analysis.  If the unit
> is the individual then you need to have more than one
> observation per individual.  If the unit is city then
> you need to have more than one observation per city.

--- On 3/12/2011 7:35 AM, Jian Zhang wrote:
> > I have a data set on individual wage incomes along
> > with education and other individual characteristics. 
> > It is reasonable that the education gives different
> > returns to different people therefore the coefficient
> > for education is random coefficient: everyone has an
> > unique slope. but I only have one year of data on
> > individual wage incomes.  So it is still possible to
> > use random coefficient model?

As mary explained there is just no way to estimate the
model you want.  Such individual level effects are just
unidentified.  Even though it is impossible to estimate
these individual level effects, it is often possible to 
get some leverage on the average of these effects.  To
see a list of references and programs relevant to Stata,
type in Stata: -findit average treatment effect-

Hope this helps,
Maarten

--------------------------
Maarten L. Buis
Institut fuer Soziologie
Universitaet Tuebingen
Wilhelmstrasse 36
72074 Tuebingen
Germany

http://www.maartenbuis.nl
--------------------------


      

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