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st: RE: 'nonest' option in 'xtreg'


From   Nick Cox <n.j.cox@durham.ac.uk>
To   "'statalist@hsphsun2.harvard.edu'" <statalist@hsphsun2.harvard.edu>
Subject   st: RE: 'nonest' option in 'xtreg'
Date   Fri, 8 Jul 2011 13:02:07 +0100

I've just searched the .pdf of the entire [XT] manual and found no reference to "nonest". 

So, you know more than is in the manual. 

I think you got no answer partly because you are not telling us, exactly and precisely, 

1. What you have typed into Stata. 

2. What "limited" information means. 

3. Where you found about this on Statalist. 

Nick 
n.j.cox@durham.ac.uk 

Sejeong Ha

I have not received any comment on my recent post. So, I am trying once more. I hope any of you can help. Thank you. 
 
My panel is an individual person and I am trying to cluster individuals by their household. A simple specification would look like
 
xtset  individual year, yearly
xtreg  x y, cluster(household)
 
However, I have an error message of "panels are not nested within clusters". With some examination through Statalist, I realised that my panels (individuals) are not in the same cluster (household) all the time (because individuals move in and out of households over time). Then, I've found that 'nonest' option somehow helps not receiving the same error. Though I wanted to find out more about this option, the information online seems limited. So, I'd like to ask you (1) what 'nonest' option does and (2) whether it is a right cure in my case. 
 

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