Abstract: | We propose a model for count data from two-stage cluster sampling, where observations within each cluster are subjected simultaneously to internal influences and external factors at the cluster level. This model can be seen as a two-stage hierarchical model with local and global predictors. This parameter-driven model causes the counts within a cluster to share a common latent factor and to be correlated. Maximum likelihood (ml) estimation based on an EM algorithm for the model is discussed. Simulation study is carried out to assess the benefit of using ml estimates compared to a standard Poisson regression analysis that ignores the within cluster correlation. |