What is clustered standard errors v/s ordinary standard errors?

09 September 2015 1 8K Report

Do anyone have information regarding the difference between clustered standard error and ordinary standard errors? When to use which one for panel data? and how to calculate the best one for panel data regression models?

Nidhi Bansal

Thank you Rajesh Sharma for explaining is such easy language. Do you know how can we calculate clustered S.E. using eviews?

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