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

[Jian Zhang <jian32@gmail.com>]

Thanks.

Mary, are you aware of some papers that explain why random coefficient
models can't be applied to cross-sectional data? Intuitively, although
each unique slope for each individual is not able to be identified, we
can still assume some kind of distribution for the slope (that is
treating the slope as a random coefficient).  Given the distribution,
we could estimate out the parameters (e.g. variance) of the
distribution with maximum likelihood method.

Jian

On Tue, Mar 15, 2011 at 11:10 PM, Maarten buis <maartenbuis@yahoo.co.uk> wrote:
> --- 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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-- 
Jian Zhang（张舰）
Assistant Professor
School of Economics
Central University of Finance and Economics, Beijing, China 100081
Email: jian32@gmail.com
Cell Phone: 86 - 137 188 65377
Web Page: http://econ.cufe.edu.cn/zhang

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