Gibson, JohnKim, BonggeunOlivia, Susan2011-01-182011-01-182010-11Gibson, J., Kim, B. & Olivia, S. (2010). Can we trust cluster-corrected standard errors? An application of spatial autocorrelation with exact locations known. (Department of Economics Working Paper Series, Number 10/07). Hamilton, New Zealand: University of Waikato.https://hdl.handle.net/10289/4945Standard error corrections for clustered samples impose untested restrictions on spatial correlations. Our example shows these are too conservative, compared with a spatial error model that exploits information on exact locations of observations, causing inference errors when cluster corrections are used.application/pdfenclustered samplesGPSspatial correlationWorking Paper