Dear Stas,

thank you for your profound response.

Just one comment about your question:
With several panels I would use the cluster option for the single inidvidual, assuming that her response of todays (t) is somehow related to her response t-1 time-periods before. So she is, certainly, 'similar to herself' and has to be grouped. But this 'similarity' might diminish as t-X grows bigger (How similar are you to yourself when you were 10 years old?). What I meant with 'direc tion of correlation' is that -cluster- does not take into account the time structure of this influence, going from the past to the present, but not from the present to the past. When I pool panels and use the - cluster- option, this time structure is neglected.

I hope I am not misled.

Justina

Dipl.Vw. Justina A.V. Fischer,
Research Associate
SIAW - University of St. Gallen
Bodanstr. 8
CH-9000 St. Gallen
Tel.:++41-71-224 2345
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www.siaw.unisg.ch