GLS could work. There are a host of corClass functions for spatial and
serial correlations in this package. Or you could specify firm as a
grouping factor and use lmer() found in the Matrix package. 

-----Original Message-----
From: [EMAIL PROTECTED]
[mailto:[EMAIL PROTECTED] On Behalf Of Tobias Muhlhofer
Sent: Tuesday, August 23, 2005 12:37 PM
To: [email protected]
Subject: [R] clustering of disturbances

Hi!

I have a dataset of properties that are owned by different firms, each
firm owning multiple properties. I am running a regression of holding
period (how long a property was held in a firm's portfolio) on the left,
and a bunch of factors on the right.

When calculating standard errors, I would like to cluster my disturbance
terms by firm. Any ideas on how to do this?

I'm guessing gls() from nlme, but what sorts of options?

Toby

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