Hi,
I run a random effects panel model of 64 subjects for 10 years each and have a question concerning the results: My output tells me that
0% of the variance of the dependent variable is between subjects and 100% is within subjects (rho).
I am not sure whether I understand the interpretation correctly, but I find this result a bit uncommon given that I test for a random effects model and
my theory predicts a lot of variation between my subjects.
Could there by any mistake in the analysis?
Thanks,
Pat
Here's the STATA output:
Random-effects GLS regression Number of obs = 545
Group variable: number Number of groups = 64
R-sq: within = 0.0138 Obs per group: min = 2
between = 0.1741 avg = 8.5
overall = 0.0168 max = 10
Random effects u_i ~ Gaussian Wald chi2(7) = 9.16
corr(u_i, X) = 0 (assumed) Prob > chi2 = 0.2416
------------------------------------------------------------------------------
AverCh~2adj2 | Coef. Std. Err. z P>|z| [95% Conf. Interval]
-------------+----------------------------------------------------------------
duration_c~e | -.9013214 .3550697 -2.54 0.011 -1.597245 -.2053976
sicchange | 2.527742 4.073774 0.62 0.535 -5.456709 10.51219
ukdum | .5491039 1.126746 0.49 0.626 -1.659277 2.757485
frendum | -1.780095 1.522111 -1.17 0.242 -4.763378 1.203189
regnlistdum | -.6389011 1.09439 -0.58 0.559 -2.783865 1.506063
mutdum | .9720512 1.790017 0.54 0.587 -2.536318 4.48042
lgcount_st~y | -.2016355 .6181168 -0.33 0.744 -1.413122 1.009851
_cons | 1.249498 1.361879 0.92 0.359 -1.419735 3.918731
-------------+----------------------------------------------------------------
sigma_u | 0
sigma_e | 11.774903
rho | 0 (fraction of variance due to u_i)
------------------------------------------------------------------------------
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