correlation in multi-level model

#1
In a multi-livel model where level 1 is within-person and level 2 is between-person, can level 1 be a simple correlation between two within-person variables?
 

hlsmith

Omega Contributor
#2
Want to make sure your question is clear; are you asking if the level 1 variable can be a correlation value between two level 1 variables. So instead of having the two variables in the model you have the parameter variables representing their correlation?
 
#3
Yes, that's right. I'm used to running a MLM with L1 as repeated measures within-person (like from experience sampling data) and L2 as between-person predictors of that L1 variance. I think. It's been a while and I'm feeling pretty unfamiliar...

Anyway, the question I want to ask is whether a within-person correlation (like between stress and well-being) is impacted by L2 between-person continuous variables.

Thanks very much for your help!