i want to estimate the following equation
y_{ist} = x_{ist}'b + n_{s} + m_{st} + e_{ist}
with
n_{s} fixed effects
m_{st} random effects (clusters)
e_{ist} iid noise
does anyone know how to conveniently estimate this in stata?
xtreg , fe cluster()
would work, but xtreg does not have a cluster option and there are too
many n_{s}'s to enter them as dummies in a regular regression like
this
xi: reg y x i.ns, cluster(mst)
thanks, edwin
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