i am working with some data regarding my PhD, where i am interested to see the ability of the institution of different villages of four districts in enhancing people's living condition. here, through some methodology we have measured the quality of institution of different villages. and the value of the institutional quality will occur as independent variable.
again some representative number of household are selected from each of the villages and their economic conditions are measured individually. which will occur in the side of dependent variable.
now, the issue is that, the value of independent variable, that is the institutional quality of one village against the value of economic conditions (the dependent variable) of each households of the respective village will be same. now i have been asked to check if it can be considered as clusters? and also i am curious and also asked to check whether regression analysis is possible here or not. if possible, than what regression analysis will be the best fitted model for it?
There will be 18 villages and 10% households from each of the respective village will be selected. Hence the number of household from each of the village will be in between 10-30.