csdid with repeated cross-sectional data

[Gene Korku]

Hello FernandoRios ,

I would like to implement csdid using repeated cross-sectional data. In my setup my data is at the household level. Different households are sampled each year. I am looking to examine the impact of a state-level policy on my outcome of interest. Policies are implemented in a staggered nature and some states have no policy (control group)

In this case what is the appropriate specification when using csdid,

csdid outcome policy, ivar(state) time(year) gvar(policy)

OR

csdid outcome policy, time(year) gvar(policy)

Also, would cluster(state) be appropriate?

[FernandoRios]

Second option and cluster state sounds appropriate