In general, yes.
See the thread by started Jason Yackee:
http://www.stata.com/statalist/archive/2006-09/msg00746.html
and ends with Mark Schaffer's comments:
http://www.stata.com/statalist/archive/2006-09/msg00782.html
Scott
> -----Original Message-----
> From: [email protected] [mailto:owner-
> [email protected]] On Behalf Of Eliana Garces
> Sent: Thursday, November 23, 2006 10:28 AM
> To: [email protected]
> Subject: st: cluster option with fixed effects
>
> Dear all,
>
> I am running the following regression with fixed effects for countries and
> the cluster option.
>
> xi: reg lp totalq size i.subsidiary i.period au be de ge gr sw fi po uk
> hu sl lt lit lux ne no slo it if segment==0,cluster(country)
>
> Is it acceptable to use cluster for a variable already controlled for in
> the regression (in this case it is country)? I am getting extremely hight
> t-statistics (above 150 for some coefficients) that are much higher than
> the t-statistics of the regression without the cluster option.
>
> Thanks for the feedback.
>
> Eliana Garces
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