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st: clustering at 2 levels

From   "Vivian Hoffmann" <>
Subject   st: clustering at 2 levels
Date   Wed, 23 Apr 2008 16:54:21 -0400 (EDT)

Hi Stata-listers,

Is there an easy way to introduce clustering at multiple levels when using
ivreg and ivtobit?

My two levels of clusters are village (vilid) and meteorological station
(id). Villages are randomly sampled from the population of villages. There
are 21 meteorological stations and I have matched one of these to each
village by minimum distance.

I tried to do 2-stage clustering using svyset <svyset id|| vilid> but got
the error "Note: stage 1 is sampled with replacement, all further stages
will be ignored".

I checked the Stata FAQ and apparently the solution to this problem is to
include a finite population correction for the highest level. But an FPC
on the met stations doesn't make sense, since these are not sampled. In
fact these are really more like strata (they cover mutually exclusive
territory). However these are not true strata and I think it would be
wrong to treat them as such.

Any suggestions would be appreciated.


Vivian Hoffmann
Applied Economics and Management
Cornell University

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