In a random effects regression we have the assumption that the individual specific heterogeneity is not correlated with the predictor variables:

Yit = 𝛽1Xit,1+ 𝛽2Xit,2+…+ 𝛽kXit,k+ 𝛼𝑖 + 𝑢𝑖t

i = entity-individual

t= measurement at time t

αi ~ N(0,σα), (i=1….n) is the unknown intercept for each entity ( n entity-specific intercepts)

Yit is the dependent variable where i = entity and t = time

Xit is an independent variable

𝑢𝑖t idiocynraticerror

Assumption: cov(αi ,Xit) = 0

Do we also make this assumption when using linear mixed effects models?

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