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Clustering with Potential Multidimensionality: Inference and Practice

Ruonan Xu, Luther Yap

arXiv 20 Nov 2024 · Econometrics · 1 citations (OpenAlex)

arXiv:2411.13372 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We show how clustering standard errors in one or more dimensions can be justified in M-estimation when there is sampling or assignment uncertainty. Since existing procedures for variance estimation are either conservative or invalid, we propose a variance estimator that refines a conservative procedure and remains valid. We then interpret environments where clustering is frequently employed in empirical work from our design-based perspective and provide insights on their estimands and inference procedures.

Citation extraction

43
references
98
in-text mentions
43
distinct cited
4
self-citations
15,725
main-text words

appendix boundary found by appendix_command · 42% of the source is main text. Read the extracted text to check this.

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
1Abadie, A., Athey, S., Imbens, G.W., and Wooldridge, J.M (2023) When should you adjust standard errors for clustering?1.000104100%
2Davezies, L., D'Haultfoeuille, X., and Guyonvarch, Y (2018) Asymptotic results under multiway clustering1.00053100%
3Yap, L (2023) General conditions for valid inference in multi-way clustering self0.9416383%
4Athey, S. and Imbens, G.W (2022) Design-based analysis in difference-in-differences settings with staggered adoption0.87452100%
5Abadie, A., Athey, S., Imbens, G.W., and Wooldridge, J.M (2020) Sampling-based versus design-based uncertainty in regression analysis0.84333100%
6Cameron, A.C., Gelbach, J.B., and Miller, D.L (2011) Robust inference with multiway clustering0.84333100%
7Antecol, H., Bedard, K., and Stearns, J (2018) Equal but inequitable: Who benefits from gender-neutral tenure clock stopping policies?0.69381100%
8Chiang, H.D. and Sasaki, Y (2023) On using the two-way cluster-robust standard errors0.64422100%
9Liang, K. and Zeger, S.L (1986) Longitudinal data analysis using generalized linear models0.64422100%
10Menzel, K (2021) Bootstrap with cluster-dependence in two or more dimensions0.64422100%

Showing the top 10 of 43 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
1Variance Estimation with Dependence and Heterogeneous Means0.73732