Hi,
I am running a random effects probit model (xtprobit) and all my variables except from one are micro level. However, in my specification I also have a macro level variable (unemployment by age group and sex). I therefore created a new variable at the intersection of age group and sex and I would like to cluster around this new variable. However, when I run my model
I get the error that "panels are not nested within clusters".
Is there a way to cluster around this variable in a panel setup even if my panels are not nested within clusters? Are there any other options given that my macro variable was merged into my data based on more than 1 group characteristic (i.e. age and sex)?
Thanks a lot in advance
I am running a random effects probit model (xtprobit) and all my variables except from one are micro level. However, in my specification I also have a macro level variable (unemployment by age group and sex). I therefore created a new variable at the intersection of age group and sex and I would like to cluster around this new variable. However, when I run my model
Code:
xtprobit depvar microindependentvariables unemploymentbyagegroupandsex, vce (cluster newvar)
Is there a way to cluster around this variable in a panel setup even if my panels are not nested within clusters? Are there any other options given that my macro variable was merged into my data based on more than 1 group characteristic (i.e. age and sex)?
Thanks a lot in advance
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