MODEL $y_{it}={\alpha }_{it}+{X^{\prime }}_{it}\beta +u_{it}$

INTERCEPT TERM

DISTURBANCE TERM

Pooled Model

${\alpha }_{it}=\alpha$

Uit

One-Way Fixed Effects

${\alpha }_{it}=\alpha +{\mu }_i$

Uit

Two-Way Fixed Effects

${\alpha }_{it}=\alpha +{\mu }_i+{\lambda }_t$

Uit

One-Way Random Effects

randomly changing over i

$u_{it}={\mu }_i+v_{it}$

Two-Way Random Effects

randomly changing over i

$u_{it}={\mu }_i+{\lambda }_t+v_{it}$