When using FE, we assume that the characteristics of an individual may impact or bias the predictor or outcome variables, and we need to control for this. Since the effect of time is in the level at model 2, only random effects for time are included at level 1. Panel Data Properties 3. Since each of these tests of simple effects uses three degrees of freedom, we will followup using pairwise comparisons. Post-hoc test of partial interaction Yet another alternative is to look at the partial interactions between treatment and time.
nest...