Dear Statalister,
I am working on panel data for two years. I am estimating an RE2SLS estimator. The instrument is using is on the governorate level while the data is per individual on a more disaggregated level.
So, I thought it is necessary to cluster the standard errors by governorate as in the code below:
However, I get this error:
panels are not nested within clusters
r(498);
How can I solve this problem and do the clustering?
Thank you.
Maye
I am working on panel data for two years. I am estimating an RE2SLS estimator. The instrument is using is on the governorate level while the data is per individual on a more disaggregated level.
So, I thought it is necessary to cluster the standard errors by governorate as in the code below:
Code:
xtset Findid year
Code:
xi: xtivreg $Y $X2 (endogvar= $IV) if female==0, re vce (cluster gov) first
However, I get this error:
panels are not nested within clusters
r(498);
How can I solve this problem and do the clustering?
Thank you.
Maye
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