st: RE: AW: RE: Panel re vs. fe model

["Jason Yackee" <jyackee@law.usc.edu>]

Dear Statalisters, 

Tom said:  "As the model indicates that both firm and time effects are
present I use -xtreg, cluster()- (i.e. -cluster(id)- for the firm
effect) with additional time dummies. In this context I encountered the
discussion about the appropriateness of the Hausman test."

My own understanding of clustering (on ID) is that it is NOT a
substitute for, or alternative to, including actual ID fixed effects.