I had the same problem, but found this note in the MICE package documentation (at http://cran.r-project.org/web/packages/mice/mice.pdf): Added June 25, 2012: The currently implemented algorithm does not handle predictors that are specified as fixed effects (type=1). When using mice.impute.2l.norm(), the current advice is to specify all predictors as random effects (type=2). Warning: The assumption of heterogeneous variances requires that in every class at least one observation has a response in y.
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