st: interpreting distribution of theta in xtreg ,re theta

[JOrsag@access.uzh.ch]

Hello everybody,

Can somebody please help me with the following rather beginner problem of 
mine. Using STATA 8 I have computed couple of Regressions estimating Random 
effects usng xtreg ..., re theta which delivers the distribution of theta as 
well. From the STATA Manual I have understood that theta is an important 
component in estimating random effects, but I am not sure how to interpret 
the distribution in other words what is the optimal distribution and are 
there some distributions which could question the whole regression result?


Thank you in advance for any comments and insight.

Greetings,

Jakub Orsag
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