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

John Gibson, Bonggeun Kim () and Susan Olivia
Additional contact information
Bonggeun Kim: Seoul National University

Economics Bulletin, 2014, vol. 34, issue 3, 1857-1863

Abstract: 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.

Keywords: Cluster-corrections; GPS; non-farm enterprises; spatial correlation (search for similar items in EconPapers)
JEL-codes: C8 O1 (search for similar items in EconPapers)
Date: 2014-08-20
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2014/Volume34/EB-14-V34-I3-P171.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-14-00083

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().