Cluster-Corrected Standard Errors with Exact Locations Known: An Example from Rural Indonesia

Cluster-corrected standard errors are widely used but may sometimes be inappropriate since household surveys are increasingly geo-referenced. Compared with the appropriate spatial error models that use details on exact locations, cluster corrections impose untested restrictions on spatial correlations. Our example from rural Indonesia suggests cluster corrections are too conservative and may cause inference errors.

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Year of publication:	2014-08-20
Authors:	Gibson, John ; Kim, Bonggeun ; Olivia, Susan
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 34.2014, 3, p. 1857-1863
Publisher:	AccessEcon
Subject:	Cluster-corrections \| GPS \| non-farm enterprises \| spatial correlation

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Extent:	application/pdf
Type of publication:	Article
Classification:	O1 - Economic Development ; C8 - Data Collection and Data Estimation Methodology; Computer Programs
Source:	RePEc - Research Papers in Economics

Persistent link: https://ebvufind01.dmz1.zbw.eu/10010889799