Clustered Standard Errors (Standard Errors)

Using the maize only version of eth_allrounds_final.dta with per hectare inputs, compare default and clustered standard errors.

  • Run reg yield_kg fert labor i.irr i.admin_1, robust
  • Run the same regression with clustered standard errors: , vce(cluster hhid)
  1. How did the standard error on fert change when moving from robust to clustered?
  2. Does clustering at the household level or plot-level make sense for this data?