Thanks, Jeff Wooldridge! Yes, I can start with a linear model and use xtscc. However, the standard errors there would be applicable to the linear model.
Given that I have 16 countries only, if I cluster the standard errors in the logit model, would that be inappropriate? If so, do you have any suggestions from the literature where this issue was addressed properly?
Given that I have 16 countries only, if I cluster the standard errors in the logit model, would that be inappropriate? If so, do you have any suggestions from the literature where this issue was addressed properly?
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