This thread is very interesting and I think it is an occasion to re-post two old questions that has not found an answer, yet, and to post a new - though related - one. Is there any test to choose between random effect and population-averaged? I guessed that one uses -xttest2- (or -xtcsd-) hoping to find a non-significant result: what should I do if the test is significant?
If I cluster on panel ID variable, "intracluster correlation" sounds to me as pointing to correlation between observations with the same ID (autocorrelation).
Which is the difference (i.e. how can I choose) between -xtgee- and any xt command clustering on the panel ID variable, if any?
Nicola
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