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ttnphns
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How to test whether I need to cluster standard errors?

I am working with panel data (flights per month of several airlines). I suppose that I need to cluster standard errors since OLS errors are not valid. Is there a way to test whether I indeed need to cluster errors and how to check across which dimension the clustering is required (e.g. airlines/type of aircraft/destinations etc)? Looking forward to any suggestions.

Anna
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