My second issue is that I attempted running regressions without xtset and initially the coefficients were all very significant. However when I cluster the standard errors at the borough level, the p-values become very large and the coefficients become largely insignificant. I was wondering why this is and whether it is essential to cluster the standard errors at the borough level?
Code:
* Example generated by -dataex-. To install: ssc install dataex clear input long price float borough_id byte host 225500 1 1 226000 1 1 343000 1 1 365000 1 1 375000 1 1 390000 1 1 570000 1 1 151000 2 0 151500 2 0 152000 2 0 152000 2 0 152000 2 0 152000 2 0 152000 2 0 152000 2 0 152000 2 0 152000 2 0 152500 2 0 152500 2 0 153000 2 0 153000 2 0 153000 2 0 153000 2 0 153000 2 0 153000 2 0 153000 2 0 153000 2 0 153333 2 0 153599 2 0 154000 2 0 154000 2 0 154000 2 0 154000 2 0 155000 2 0 155000 2 0 155000 2 0 155000 2 0 155000 2 0 155000 2 0 155000 2 0 155000 2 0 155000 2 0 155000 2 0 155000 2 0 155000 2 0 155000 2 0 155000 2 0 155000 2 0 155000 2 0 155500 2 0 156000 2 0 156000 2 0 156000 2 0 156000 2 0 156000 2 0 156000 2 0 156000 2 0 157000 2 0 157000 2 0 157500 2 0 157500 2 0 157500 2 0 157500 2 0 158000 2 0 158000 2 0 159000 2 0 159000 2 0 159000 2 0 159000 2 0 159000 2 0 159000 2 0 159500 2 0 159800 2 0 160000 2 0 160000 2 0 160000 2 0 160000 2 0 160000 2 0 160000 2 0 160000 2 0 160000 2 0 160000 2 0 160000 2 0 160000 2 0 160000 2 0 160000 2 0 160000 2 0 160000 2 0 160000 2 0 160000 2 0 160000 2 0 160000 2 0 160000 2 0 160000 2 0 160000 2 0 160000 2 0 160000 2 0 160000 2 0 160000 2 0 160000 2 0 end
0 Response to Panel data and regression with vs. without clustering standard errors
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