Hello everyone,

I am using panel data and running a model with the Least Squares Dummy Variables Model (LSDVM).

I have heteroskedasticity and autocorrelation in one of my specifications and only autocorrelation in the others.

However, I am confused about the difference of the following standard errors:
1.
Code:
reg Y X1 X2, vce cluster (id)
and

2.
Code:
reg Y X1 X2, robust cluster (id)
Is robust cluster (id) to deal with both autocorrelation and heteroskedasticity?
And is vce cluster (id) only to deal with autocorrelation?


Thanks in advance,
Best,
Simona