Dear Statalister,

I basically encounter a problem similar to this: https://www.statalist.org/forums/for...try-year-level

However, the solution does not work for me.

Basically, I want to do the following.

xtset ID year
xtreg y x1 x2 x3 x4, fe vce(cluster state)

However I always get 'panels are not nested within clusters', even if I follow the advice in the other thread.

Any insights on what I could do?

Many thanks in advance!