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At What Level Should One Cluster Standard Errors in Paired and Small-Strata Experiments?

By Clément de Chaisemartin and Jaime Ramirez-Cuellar

American Economic Journal: Applied Economics, January 2024

In matched pairs experiments in which one cluster per pair of clusters is assigned to treatment, to estimate treatment effects, researchers often regress their outcome on a treatment indicator and pair fixed effects, clustering standard errors at the unit...