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st: interpretating xtmixed as decomposition


From   "Lim, Raymond" <[email protected]>
To   "[email protected]" <[email protected]>
Subject   st: interpretating xtmixed as decomposition
Date   Fri, 11 Nov 2011 16:57:18 -0500

Hello Statalister,
If I do xtmixed with two levels, can I interpret sd(_cons) as decomposition of unobserved
effects? For example, I run the command below. Student is nested in schools. Is it correct to 
say of the unobserved random effects, 53% is due to school and 48% is due to student random 
effects? I get 53% from .1298 / (.1298 + .1155)

 
xtmixed testscore controlvars | schoolid: | studentid:

The bottom of the output says
------------------------------------------------------------------------------
  Random-effects Parameters  |   Estimate   Std. Err.     [95% Conf. Interval]
-----------------------------+------------------------------------------------
schoolid: Identity           |
                   sd(_cons) |   .1298335   .0071065       .116626    .1445366
-----------------------------+------------------------------------------------
studentid: Identity          |
                   sd(_cons) |   .1155506   .0031687       .109504    .1219311
-----------------------------+------------------------------------------------
                sd(Residual) |   .8789076   .0004965       .877935    .8798814
------------------------------------------------------------------------------
LR test vs. linear regression:       chi2(2) = 37656.95   Prob > chi2 = 0.0000

---
Raymond Lim
Research Coordinator
Columbia Business School - Finance & Economics Division
[email protected]

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