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Random Coefficients Regression. RPD – Section 18.3. Basic Model. Simple Linear Regression where each of n experimental units is observed at t points in time (typically) . General Model ( Gumpertz and Pantula (1989)).

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random coefficients regression

Random Coefficients Regression

RPD – Section 18.3

basic model
Basic Model
  • Simple Linear Regression where each of n experimental units is observed at t points in time (typically)
general model gumpertz and pantula 1989
General Model (Gumpertz and Pantula (1989))
  • Possibly Multiple Linear Regression where each of n experimental units is observed at t points in time, based on regression with k parameters
example annual air revenues for 10 markets
Example – Annual Air Revenues for 10 Markets
  • Random Sample of n = 10 large air markets (City Pairs), each observed over 5 years
  • Y = ln(Average Fare * Average weekly Passengers)
  • X = Year (1996/7=0, 2000/1=4) – Note: All Cities have same levels of X (not necessary for the method)
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