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
Economist- Brussels
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