Question: Two-way random effects model. We modify the random effects model by the addition of a time-specific disturbance. Thus, where Write out the full disturbance covariance

Two-way random effects model. We modify the random effects model by the addition of a time-specific disturbance. Thus,

Ya = a + X, + it + Ui + V,

where

image

Write out the full disturbance covariance matrix for a data set with n = 2 and T = 2.

Ya = a + X, + it + Ui + V,

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