For example, assuming my observations are clustered within states:
Code:
reg y x i.state, cluster(state) robust
Such robust standard errors can deal with a collection of minor concerns about failure to meet assumptions, such as minor problems about normality, heteroscedasticity, or some observations that exhibit large residuals, leverage or influence. For such minor problems, the robust option may effectively deal with these concerns.
Thank you!
Best,
Peter
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