Comparing a mixed model with a ridge regression

$\newcommand{\var}{\text{Var}}$$\newcommand{\cov}{\text{Cov}}$$\newcommand{\E}{\text{E}}$$\newcommand{\one}{\mathbf 1}$$\newcommand{\0}{\mathbf 0}$$\newcommand{\a}{\alpha}$$\newcommand{\l}{\lambda}$$\newcommand{\s}{\sigma}$$\newcommand{\e}{\varepsilon}$$\newcommand{\t}{\theta}$In this post I’m going to consider a linear model of the form $y = \mu\one + Z\a…

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