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Re: st: Commands for cluster analysis

From   Rose Medeiros <>
Subject   Re: st: Commands for cluster analysis
Date   Sun, 11 Sep 2005 15:09:50 -0400

The base command is cluster, but there are a number of options, typing "help cluster" in stata will give you a list of all the commands. Specifying generate(varname) after the comma will generate a variable based on the clusters. I'd like to give you a strong word of caution against thinking about clusters as "natural" because they are strongly influenced by the decision you, as the researcher, make. As with other techniques, the variables you select to base the clusters on are very influential, but there are also a lot of other decisions the researcher has to make in the process of performing cluster analysis. For example, whether hierarchical or nonhierarchical clustering is used, which specific method within these broad classes is used, the number of clusters to be formed, etc. These decisions are important because they will often have a strong influence on your results. The specific type of clustering to be used (e.g. kmeans versus kmedian) can be suggested by the distribution of your data, but most of the decisions will need to be informed by theory.

Ping Zheng wrote:

Dear all

We are conducting inward FDI locational determinants by using a panel
data set with 28 home countries. we'd like to try a country cluster
analysis to cluster the home countries into different groups naturally
by Stata. What are the commands for this and what are the commands for
regressing the different groups obtained from clustering by using OLS
and Random Effects GLS?

Many thanks for your help

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