(1) I wish to specify a between-level latent class variable in the context of a multilevel model - but am wondering what might be the minimum number of cluster units (level 2) for this analysis to work? I have approx. 37 level 2 units(neighborhoods) - but am thinking that this might be too few because in a single-level latent class analysis, one usually wants/needs several hundered or more individuals. Is this the same for a level 2 factor.
(2) Also, is it possible to also have a level 1 latent class factor in the same model?