st: xtreg, fe cluster dfadj option

[Ilaria Tucci <ilale78@yahoo.it>]

Dear all

Hi I have a question concerning the cluster option with xtreg, fe. I saw that in stata 9.0 the option cluster was correcting for intragroup correlation and for the within transoform, while in stata 9.2 the option cluster adjusts only for intragroup correlation, unless is specified the command dfadj. I'm not sure to have understood which is the meaning of the adjustment for the within transformation (dfadj, that is seldom used) and, overall, when it is the case to be applied. 
Can anyone help me to understand it or suggest me something I can read about??

The data I use are individual data for which I adjust the standard errors (with the cluster option) for heteroskedasticy and autocorrelation by the regions they live in. 

Thank you
Ilaria




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