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st: Murphy and Topel correction and cluster adjustment


From   Hongping Tan <[email protected]>
To   [email protected]
Subject   st: Murphy and Topel correction and cluster adjustment
Date   Thu, 27 Jan 2011 21:57:33 -0500

QVF package provides the MTopel option to compute Murphy-Topel estimator of variance. Is it possible to adjust both MTopel and cluster at the same time? When I use MTopel option, I find the reported t-stat is too high compared to the case when I use CLUSTER option. Besides, are you aware if there is any published paper that uses a bootstrap to solve the generated regressor problem?

Thanks,

Hongping Tan
Assistant Professor of Finance
School of Accounting and Finance
University of Waterloo

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