Table 7.

Efficiency loss due to misspecification of W: with family-specific effects, μ₁ = μ₂ = 5, var(α_i) = 25

Ordinary least square estimates
	p=0.2		p=0.4			p=0.9
True β	Adjusted Mean β̂	Empirical S.E.	Adjusted Mean β̂	Empirical S.E.	Efficiency Loss	Adjusted Mean β̂	Empirical S.E.	Efficiency loss
10	10.02	1.61	9.99	1.67	4%	10.00	1.64	2%
20	19.96	1.59	19.99	1.66	4%	20.05	1.69	6%
50	50.03	1.63	49.99	1.66	2%	49.94	1.67	2%
100	99.99	1.60	99.95	1.60	0%	100.00	1.64	2%
Weighted least square estimates
10	10.03	1.42	9.99	1.46	3%	10.00	1.49	5%
20	19.98	1.43	20.02	1.49	4%	20.05	1.45	1%
50	50.00	1.43	50.01	1.50	5%	49.96	1.51	6%
100	99.98	1.43	99.95	1.44	1%	100.00	1.50	5%