Hi,
I am trying to estimate a model with clustered errors, however the number of clusters is quite low, approximately 10.
I have checked several references about it. I was wondering whether adding an option vce(cluster variable) is sufficient, given that STATA takes into account the T distribution to derive the p values.
Could you suggest how I can take into account and correct for the low number of clusters?
Thank you in advance.
Best,
Nikos
I am trying to estimate a model with clustered errors, however the number of clusters is quite low, approximately 10.
I have checked several references about it. I was wondering whether adding an option vce(cluster variable) is sufficient, given that STATA takes into account the T distribution to derive the p values.
Could you suggest how I can take into account and correct for the low number of clusters?
Thank you in advance.
Best,
Nikos
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