Bootstrap-Based Improvements for Inference with Clustered Errors
Bootstrap-Based Improvements for Inference with Clustered Errors
Microeconometrics researchers have increasingly realized the essential need to account for any within-group dependence in estimating standard errors of regression parameter estimates. The typical preferred solution is to calculate cluster-robust or sandwich standard errors that permit quite general heteroskedasticity and within-cluster error correlation, but presume that the number of clusters …