I'm trying to run some panel data, and the way the sampling occurred I should bootstrap the standard errors with resampling by cluster (as described in Harden 2011). I've done this successfully with xtreg (fixed effects) but I'm trying to incorporate instrumental variables and I'm getting some error messages.
The data I have is protected, but I can simulate the problem with the nlswork dataset.
Instead, I get an error that says:
I'm also open to xtivreg2, if need be.
The data I have is protected, but I can simulate the problem with the nlswork dataset.
Code:
cls webuse nlswork, clear keep if year==77 | year==78 gen sampleclustervar=1 if idcode<2696 replace sampleclustervar=2 if idcode>2696 & idcode<6000 xtset id year xtreg ln_wage age tenure hours union, fe vce(bootstrap, reps(1000)) cluster(sampleclustervar) // This line works fine xtivreg ln_wage age tenure hours (union= south), fe vce(bootstrap, reps(1000)) cluster(sampleclustervar) // This line does not work
Code:
option cluster() not allowed an error occurred when bootstrap executed xtivreg
