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Does the “non-independent" data structure defined in mixed models follow the “independency” defined by probability theory?

On point 1, depending on the number of sites yes you can use a random
effect instead of a fixed effect to account for omitted variables like the
site selection mechanism.


If you are doing this to control for site effects that are essentially
contamination and of no theoretical interest, then using fixed effects for
site is the easiest approach for a linear model. In most generalized linear
models you can?t effectively difference the fixed effects out of the data
in the same way and including them in the model will result in incidental
parameters bias with as few as ten dummy variables.


If you are interested in understanding how the site related latent variable
might work, then you should use a mixed effects model and be sure to
include group averages for your lower level variables so that you can
interpret the within group and between group effects separately.  You may
also need to model random coefficients because decomposing the variables
doesn?t always completely orthogonalize the within group versions of the
variables and the random effect.


With any random effect you are assuming that it is uncorrelated with fixed
components in the model which means you are modeling the relationship
between the random effect and all of your independent variables regardless
of what you do. You can either take the fixed effects/group indicator
variables approach or the mixed effects modeling approach but in both cases
doing it properly means you have accounted for lack of independence across
variables and within sites.
On Tue, Sep 6, 2016 at 3:41 AM, Chen, Chun <chun.chen at wur.nl> wrote: