Random-Effects, Fixed-Effects and the within-between Specification for Clustered Data in Observational Health Studies: A Simulation Study
Figure 8
Significant within-group variation relative to between-group variation.
Row 1 (interpreted like Figure 3) shows the distribution of the errors in marginal effects estimates from the RE estimation (red), FE estimation (blue), and WB approach (green). Row 2 (interpreted like Figure 4) shows MSE associated with the RE estimation (red), FE estimation (blue), and WB approach (green) errors. Row 3 (interpreted like Figure 6) shows the distribution of the RMSE from the fitted values estimated using RE estimation (red), FE estimation (blue), and WB approach (green). The within-group variation is set to 0.75, while the between-group variation is 0.25. All other simulation input parameters are set to baseline.