IF there is "within R-square" is small, it means that your variables are not changing much over time. With little temporal variation in the variables, you are not gaining much from having panel data. Your estimates are based primarily on the variation between cases. David Greenberg, Sociology Department, New York University
----- Original Message -----
From: Michael Johnson <[email protected]>
Date: Thursday, October 14, 2004 8:05 pm
Subject: st: Within R-sq
> Dear listers:
>
> I ran the fixed effects model and got a very low within R-sq.
> Could anybody
> tell if this is a problem and why it is so low? For comparison, I
> listed fe,
> re and be results. Thanks alot.
>
> Mike
>
> *****************************************************************
> xtreg y x, fe
> R-sq: within = 0.0138 Obs per group: min =
> 2
> between = 0.1696 avg =
> 2.0
> overall = 0.1419
>
> xtreg y x, re
> R-sq: within = 0.0120 Obs per group: min =
> 2
> between = 0.4979 avg =
> 2.0
> overall = 0.4116 max =
> 2
>
>
> xtreg y x, be
> R-sq: within = 0.0109 Obs per group: min =
> 2
> between = 0.5072 avg =
> 2.0
> overall = 0.4097 max =
> 2
>
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