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Re: st: comparing policies across countries: multilevel estimation?

From   Austin Nichols <>
Subject   Re: st: comparing policies across countries: multilevel estimation?
Date   Wed, 15 Dec 2010 16:05:24 -0500

Laura R. <> :
You seem to be conflating multilevel models like -xtmixed- and
selection models like -heckman- and cluster-robust SEs.  More info is
required for a reasonable response.

On Wed, Dec 15, 2010 at 6:48 AM, Laura R. <> wrote:
> Dear Stata users,
> my question is whether I have to use multilevel models or not for my
> estimations.
> I have panel data with individual data, and I added some variables on
> the country level, e.g. the unemployment rate and some dummies for
> different policies. Several countries may have the same policies or
> not.
> As my aim is the estimation of the impact of these policies on the
> dependent variable, I wonder if I have to estimate multilevel models
> or not. As I have understood it, in multilevel models you cluster
> groups of individuals, e.g. by country. But, as my aim is to find out
> about differences on the policies on the country level, wouldn't the
> clustering by country somehow cancel out (i.e. abolish) differences in
> the policies between the countries?
> If I had to use multilevel models, are they also appropriate for a
> two-stage selection process? If so, I would have to use -xtmelogit- in
> the first step and -xtmixed- in the second step, wouldn't I?
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