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Published online by Cambridge University Press: 19 May 2022
Variable intercept linear regression through decomposing the error terms into the components of individual varying but time invariant; individual invariant but time varying; and individual-time varying component are introduced. Pros and cons of treating individual-specific and/or time-specific effects as fixed or random are discussed. Tests for fixed effects or random effects and ANOVA tests for the presence of individual or time-specifics are introduced.
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