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  • Adjusted/Within/Between R squared

    Hi,

    I would be very grateful if someone could confirm whether my understanding is correct.
    I ran a panel regression, then asked stata for the adjusted r squared, can I assume this is the within r squared? My panels are local authorities.

    "The adjusted r squared is 0.361 for dry recycling and 0.699 for compost, telling us only 36.1% of the variation in dry recycling rates is explained by the independent variables, and 69.9% of the variation in compost recycling rates."

    Is it the variation in dry recycling rates, or the variation within local authorities in dry recycling rates?

    Thank you in advance!
    Darcy

  • #2
    The regular output of -xtreg- does not include an "adjusted r squared." I presume you looked at the value of e(r2_a). Yes e(r2_a) is an adjusted r squared calculated from the within r squared. In your proposed statement, I would replace "% of variation" by "% of within-authority variation" throughout.

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    • #3
      Thanks Clyde this is very helpful!

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