Thanks Austin. In principle, assuming the number of states is
sufficiently "large", wouldn't it be sensible to cluster on both
variables? If so is creating a new variable with the each state-year
combination the right way forward?
Thanks,
Bert
On Sun, Sep 27, 2009 at 8:26 AM, Austin Nichols <[email protected]> wrote:
> Bert Jung <[email protected]>:
> You should use vce(cluster state) rather than
> egen g=group(state year)
> reg y x, vce(cluster g)
> assuming you have 51 or so clusters with the first method.
>
>
> On Sun, Sep 27, 2009 at 12:15 AM, Bert Jung <[email protected]> wrote:
>> Dear Statalisters,
>>
>> I have a repeated cross-section of individuals in states (2 time
>> periods) and want to run a difference in difference with state-year
>> clusters. Since these cluster variables are not nested, how can I
>> include this in -vce(cluster XX)-?
>>
>> Cheers,
>> Bert
>
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