So I am running a pooled OLS. My dependent variable is house prices, and my main explanatory variables are job creation and distance to job creation, plus a raft of control variables.
The housing data is a cross section, and the firm data is panel.
The firm level data is job creation, sector, and country of origin. I calculate distance to job creation using Arc.
How do I decide whether it is better to cluster at the house level, or the firm level?