This demonstrates use of the Sage Cell Server
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10.3 Basic Fixed Effects Models
A basic (and very useful) longitudinal data model is a special case of the multiple linear regression model. We use the regression modeling assumptions with the regression function
[mathjax]begin{eqnarray}
mathrm{E}~y_{it} & = & alpha_i + beta_1 x_{it,1} + beta_2
x_{it,2} + cdots + beta_k x_{it,k} nonumber\
& = & alpha_i + mathbf{x}_{it}^{prime} boldsymbol beta,~~~~~~
t=1, ldots, T_i,~~ i=1, ldots, n .
end{eqnarray}
This is the basic fixed effects model.
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