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st: Re: r-bar-sqr


From   Christopher F Baum <[email protected]>
To   [email protected]
Subject   st: Re: r-bar-sqr
Date   Wed, 25 Dec 2002 08:10:33 -0500

--On Wednesday, December 25, 2002 2:33 -0500 Alejandro wrote:

Hey Statalisters,

I'd like to know first, if the concept of adjusted R
square also works when you are running panel data with
fixed effects (that is, as you increase the
independent variables your R square increases, like in
OLS). My guess is that also happens in the case of
fixed effects, you correct me if i'm wrong. If that is
the case, how can I calculate in STATA ?

Thanks a lot, and Merry X'mas for you all....

Since the model is just OLS with 'g' dummy variables, everything you know about OLS applies here. areg will estimate a fixed effects model: e.g.

xtreg y x1 x2, i(country) fe
areg y x1 x2, absorb(country)

will give you the same regression, but areg will give you the standard regress output (and will calculate robust SE if you wish).

Best wishes of the season
Kit


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