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st: [xtreg fe] [regress] clustered standard errors differ


From   "Marder, Andrew" <[email protected]>
To   "[email protected]" <[email protected]>
Subject   st: [xtreg fe] [regress] clustered standard errors differ
Date   Fri, 29 Mar 2013 22:51:22 -0400

Dear Stata List,

I have found that calculating clustered standard errors using "xtreg fe" does not match those from "regress".  Here is some sample code to recreate this discrepancy:

webuse nlswork, clear
keep if _n <= 100

regress ln_w age tenure i.idcode, vce(cluster idcode)

xtset idcode
xtreg ln_w age tenure, fe vce(cluster idcode)

I have written some thoughts on what might be happening here: http://amarder.github.com/2013/03/29/clustered-standard-errors.html

Is this a bug in Stata or am I doing something silly?

Thanks for the help, Andrew

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