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Cluster-Robust Inference: A Guide to Empirical Practice

James G. MacKinnon, Morten Ørregaard Nielsen, Matthew D. Webb

arXiv 6 May 2022 · Econometrics · publishedJournal of Econometrics (2022) · 314 citations (OpenAlex)

arXiv:2205.03285 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Methods for cluster-robust inference are routinely used in economics and many other disciplines. However, it is only recently that theoretical foundations for the use of these methods in many empirically relevant situations have been developed. In this paper, we use these theoretical results to provide a guide to empirical practice. We do not attempt to present a comprehensive survey of the (very large) literature. Instead, we bridge theory and practice by providing a thorough guide on what to do and why, based on recently available econometric theory and simulation evidence. To practice what we preach, we include an empirical analysis of the effects of the minimum wage on labor supply of teenagers using individual data.

Citation extraction

88
references
182
in-text mentions
88
distinct cited
12
self-citations
27,286
main-text words

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Mac\-Kinnon, J.G., Nielsen, M.., Webb, M.D (2022) Fast jackknife and bootstrap methods for cluster-robust inference self1.00084100%
2Mac\-Kinnon, J.G., Nielsen, M.., Webb, M.D (2022) Leverage, influence, and the jackknife in clustered regression models: Reliable inference using summclust self1.00074100%
3Pustejovsky, J.E., Tipton, E (2018) Small sample methods for cluster-robust variance estimation and hypothesis testing in fixed effects models1.00064100%
4Mac\-Kinnon, J.G., Webb, M.D (2017) 1Wild bootstrap inference for wildly different cluster sizes self1.00063100%
5Bell, R.M., McCaffrey, D.F (2002) Bias reduction in standard errors for linear regression with multi-stage samples1.00053100%
6Ibragimov, R., Müller, U.K (2016) Inference with few heterogeneous clusters1.00053100%
7Mac\-Kinnon, J.G., Webb, M.D (2018) The wild bootstrap for few (treated) clusters self0.92843100%
8Djogbenou, A.A., Mac\-Kinnon, J.G., Nielsen, M (2019) Asymptotic theory and wild bootstrap inference with clustered errors self0.874112100%
9Mac\-Kinnon, J.G (2022) Fast cluster bootstrap methods for linear regression models0.87482100%
10Bester, C.A., Conley, T.G., Hansen, C.B (2011) Inference with dependent data using cluster covariance estimators0.87462100%

Showing the top 10 of 88 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Wild Bootstrap Inference for Instrumental Variables Regressions with Weak and Few Clusters1.00094
2Leverage, Influence, and the Jackknife in Clustered Regression Models: Reliable Inference Using summclust1.00054
3Gradient Wild Bootstrap for Instrumental Variable Quantile Regressions with Weak and Few Clusters1.00053
4Influence Analysis with Panel Data0.92843
5Testing for the appropriate level of clustering in linear regression models0.84333
6Cluster-Robust Jackknife and Bootstrap Inference for Logistic Regression Models0.84333
7Jackknife Inference with Two0.04167em–0.08333em Way Clustering0.84333
8Improved Inference for CSDID Using the Cluster Jackknife0.84333
9Nonparametric Regression under Cluster Sampling0.73732
10Inference with few treated units0.73732