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Re: AW: st: RE: RE: difference between robust and cluster option


From   Christopher Baum <[email protected]>
To   "[email protected]" <[email protected]>
Subject   Re: AW: st: RE: RE: difference between robust and cluster option
Date   Sat, 17 Jul 2010 08:40:45 -0400

<>
On Jul 17, 2010, at 2:33 AM, Jing wrote:

> according to Petersen (2009) (estimating standard errors in finance
> panel data sets: comparing approaches, review of financial studies,
> 2009.), the standard errors clustered by firm and time can be a useful
> robustness check. My dataset is a sample of 560 firms over 9 years
> (unbalanced). Could you please advise me how I can cluster both firm and
> time in my analysis by using stata. cos when typing "xtreg, fe cluster
> (year)", the result shows "panels are not nested within clusters".

ssc install xtivreg2, replace
ssc install ivreg2, replace
ssc install ranktest, replace

xtivreg2 depvar indepvars, fe cluster(year firm)

Kit Baum   |   Boston College Economics & DIW Berlin   |   http://ideas.repec.org/e/pba1.html
                              An Introduction to Stata Programming  |   http://www.stata-press.com/books/isp.html
   An Introduction to Modern Econometrics Using Stata  |   http://www.stata-press.com/books/imeus.html


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