Hi,

I have a balanced panel with a firmid variable and a time variable. I want to run a regression with firm fixed effects and then cluster standard errors by time.

When I run:
xtreg dep indep, fe vce(cluster time)

I get the error "panels are not nested within clusters".

Most comments on the forum re: this error seem to be when there is a sub category of firmid or geography id. Can anyone help with simple firmid and time panel?

Thanks!