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This document discusses when standard errors should be adjusted for clustering in empirical economic analysis. It argues that clustering is best viewed as a design issue related to either the sampling design or experimental design. Viewing clustering this way clarifies the role of adjustments and helps decide whether and at what level to cluster. Adjustments are generally conservative unless sampling is actually clustered, a small fraction of clusters are observed, or a small fraction of units are sampled w
- Author
- Hana C.
- Language
- EN