Random Regression Coefficient Models

This chapter describes a modification of the nested error regression model having random regression coefficients. We can intuitively expect that the slope parameters of some explanatory variable are not constant and therefore they should take different values in different domains. The random regression coefficient model gives a practical solution to this problem by assuming that the beta parameters are random and therefore they give a more flexible way of modeling. The chapter gives fitting algorithms, derives the empirical best predictors of domain means, and approximates the mean squared errors. The last section provides R codes.