randomcoefficients
Random coefficients refer to parameters in a statistical model that are not fixed but are instead treated as random variables themselves. This means that instead of assuming a single, constant value for a coefficient, we allow it to vary according to some probability distribution. This approach is commonly used in econometrics, particularly in panel data analysis, and in other fields where heterogeneity across units or time is expected.
The primary motivation for using random coefficients is to account for unobserved heterogeneity. For example, in
When estimating a random coefficients model, the goal is not only to estimate the mean of the