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Cluster Sampling Slides

Cluster Sampling Slides - Whats New in Econometrics Lecture...

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What’s New in Econometrics? Lecture 8 Cluster and Stratified Sampling Jeff Wooldridge NBER Summer Institute, 2007 1. The Linear Model with Cluster Effects 2. Estimation with a Small Number of Groups and Large Group Sizes 3. What if G and M g are Both “Large”? 4. Nonlinear Models 1
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1 . The Linear Model with Cluster Effects . For each group or cluster g , let  y gm , x g , z gm : m 1,..., M g be the observable data, where M g is the number of units in cluster g , y gm is a scalar response, x g is a 1 K vector containing explanatory variables that vary only at the group level, and z gm is a 1 L vector of covariates that vary within (as well as across) groups. The linear model with an additive error is y gm x g z gm v gm (1) for m 1,..., M g , g 1,..., G . Key questions: Are we primarily interested in or ? Does v gm contain a common group effect, as in 2
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