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st: Independence between clusters, how to test?


From   Garry Anderson <g.anderson@unimelb.edu.au>
To   statalist@hsphsun2.harvard.edu
Subject   st: Independence between clusters, how to test?
Date   Mon, 22 Sep 2003 18:57:25 +1000

Hi,

With panel data, how may one test the assumption that CLUSTERS are statistically independent?

With the xt--- commands this assumption is always required, but I am unsure as to how it can be verified. For example, students within schools, but schools are assumed to be independent of each other. It could be hypothesized that schools that are next to each other are not independent. It is assumed that there is *not* another level of nesting, such as school administration district.

Any comments would be much appreciated.

Kind regards, Garry

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