Thanks for the help.
I was using within, but wanted to make sure I am not missing out on s/th
else if I do not consider the other 2 R squared.
Cheers
steffen
> -----Original Message-----
> From: [email protected]
> [mailto:[email protected]] On Behalf Of
> Justin Smith
> Sent: Wednesday, August 16, 2006 4:35 AM
> To: [email protected]
> Subject: Re: st: between overall within squared on xtreg
>
>
> The three R-squareds are:
>
> 1) within: The R-squared from the mean-deviated regression,
> i.e. the ordinary r-squared from running OLS on the transformed data.
>
> 2)between: first, this computes the fitted values using the
> fixed-effects parameter vector and the within-individual
> means of the indepdenent variables. Then calculates the
> r-squared as the squared correlation between those predicted
> values and the within-individual means of the original y variable.
>
> 3) overall: first, this computes the fitted values using the
> fixed-effects parameter vector and the original,
> untransformed independent variables. Then calculates the
> r-squared as the squared correlation between those predicted
> values and the original, untransformed y variable.
>
>
> Seems to me like you would want the within R-squared, since
> you are using the within estimator.
>
> Justin Smith
>
>
>
>
> On Wed, 16 Aug 2006 01:54:44 +0200
> "Steffen H. Gr�ning" <[email protected]> wrote:
> JS>Hi,
> JS>
> JS>I have been looking on FAQ and quite every other resource
> that google
> JS>pointed me to. I have gotten so far as to know that when using a
> JS>fixed
> JS>effects model to only interpret the within r squared.
> JS>But why is stata giving the other r squares as well and how can i
> JS>interpret them?
> JS>I haven�t found a clear cut answer to the differences and
> JS>interpretations of within between and overall r squared. Maybe
> JS>someone
> JS>could help me out here?
> JS>
> JS>Thank You.
> JS>Steffen.
> JS>
> JS>
> JS>*
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>
> Justin Smith
> PhD Candidate
> Department of Economics
> McMaster University
> Phone: (905) 962-0353
> E-mail: [email protected]
> *
> * For searches and help try:
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>
*
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