How to Use a Fixed Effect Model to Improve Your Data Structure

Jason: Fixed effect models explain away a whole level of your data structure so if I have four schools and say what do I do with this school level thing. He says it's almost like a magic button to say let me just be a black hole that absorbs all the school level stuff. Jason: By putting those dummy variables in you're kind of centering in a way that you're subtracting out all of the schoollevel stuff It's a lot like a cluster means centering approach in multi-level models.