I saw your note in Stata re: adjusted R square and that while -areg-
calculates the adjusted R^2 statistic, but, it is not statistically
equivalent to the FE model in -xtreg, fe-: Therefore, my question is
if I wanted to stay with xtreg, fe how whould I calculate adjusted R
square? Thank you for your help
The model estimated by xtreg,fe is certainly 'statistically
equivalent' to that estimated by areg:
These models have identical coefficients, standard errors, F-
statistics and RMSEs. What is not equivalent? These are just two
different ways of implementing the LSDV (least squares dummy
variable) approach, taking into account the loss of d.f.