VarE h whh ou2 E

Thus, in the particular case of membership of just two farms with equal weights we have

Further details of this model are given by Hill and Goldstein [29].

An extension of the multiple membership model is also possible and has important applications, for example in modelling spatial data. In this case we can write y{ ji}{ j2} = (XS)i{ j} + E Wi ;h«1h + E W2,hM2h + e{ j}

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