st: Fixed Effect Estimation Results

["Sam Rawlings, Social Sciences and Law 03" <sr3209@bristol.ac.uk>]

Hi There,

I am an undergraduate student in my final year and I am quite new to Stata, 
and indeed, to a lot of the techniques and models that can be used in 
Stata. So my apologies if this question may seem quite simple but I can't 
seem to find an explanation anywhere.

I have estimated (several) sub-samples for a fixed effects model using 
panel data. However, in order to interpret my results, I'm slightly 
confused about one of the statistics given - corr(u_i, Xb). Is there any 
chance anyone could enlighten me, as I can only guess what it means and 
would rather know for sure when writing up my results. I've included one of 
my regression results below for reference to what I'm asking about. Any 
comments would be appreciated!

Samantha


Fixed-effects (within) regression               Number of obs      =   560
Group variable (i): country                     Number of groups   =   112

R-sq:  within  = 0.6385                         Obs per group: min =   5
      between = 0.9909                                        avg =   5.0
      overall = 0.9694                                        max =   5

                                               F(3,445)           =   62.01
corr(u_i, Xb)  = 0.9249                         Prob > F           =  0.0000

---------------------------------------------------------------------------
---
   lngdpwaa |      Coef.   Std. Err.      t    P>|t|     [95% Conf. 
Interval]
-------------+-------------------------------------------------------------
---
laglngdpwaa |   .6389257   .0263356    24.26   0.000     .5871681 .6906832
        lns |   .1294206   .0248952     5.20   0.000     .0804939 .1783473
  lnngdelta |  -.0818537   .0922956    -0.89   0.376    -.2632431 .0995357
      _cons |   3.080864   .3074474    10.02   0.000     2.476635 3.685093
-------------+-------------------------------------------------------------
---
    sigma_u |  .29921031
    sigma_e |  .13863343
        rho |  .82326502   (fraction of variance due to u_i)
---------------------------------------------------------------------------
---
F test that all u_i=0:     F(111, 445) =     2.78            Prob > F = 
0.0000

----------------------
SB Rawlings, Social Sciences and Law 03
sr3209@bristol.ac.uk
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