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Title:A comment on variance decomposition and nesting effects in two- and three-level designs PDF Logo
Authors:Konstantopoulos, Spyros
Issue Date:2007
Series/Report no.:IZA Discussion Papers 3178
Abstract:Multilevel models are widely used in education and social science research. However, the effects of omitting levels of the hierarchy on the variance decomposition and the clustering effects have not been well documented. This paper discusses how omitting one level in three-level models affects the variance decomposition and clustering in the resulting two-level models. Specifically, I used the ANOVA framework and provided results for simple models that do not include predictors and assumed balanced nested data (or designs). The results are useful for teacher and school effects research as well as for power analysis during the designing stage of a study. The usefulness of the methods is demonstrated using data from Project STAR.
Subjects:Variance decomposition
nested designs
clustering
JEL:C00
Document Type:Working Paper
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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