Dear alls
I am working with a cross-national data set. It includes observations for 20 developed countries in 1990. Since these countries are not randomly sampled, I thought to use the reg option cluster(country). In fact it specifies that the observations are not independent within groups
Is this a reasonable solution in this case?
If so, why do I obtain the same result by using robust option?
I wonder if robust standard errors are the statistical remedy both for no independent observations and heteroskedasticity?
So, what is the relationship between heteroschedasticity and no indipendent observations?
I ask thesw questions because I didn't find any answers on STATA manuals.
thanks a lot for your help
Best regards
Federico
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