interpretation of the random effects parameters

[ronny manos]

I used the following command:

mixed f_borr_w WoB_w LnBorr_w LnBoard10_w 2.legal_code ProfitM_w DebtEquity_w i.year || country_code: ||ID: , vce(cluster country_code )

which produced the following results for the random part of the model.

------------------------------------------------------------------------------
| Robust
Random-effects parameters | Estimate std. err. [95% conf. interval]
-----------------------------+------------------------------------------------
country_code: Identity |
var(_cons) | .0229282 .0045774 .0155037 .033908
-----------------------------+------------------------------------------------
ID: Identity |
var(_cons) | .0350149 .0043495 .0274485 .044667
-----------------------------+------------------------------------------------
var(Residual) | .0057171 .0006903 .0045123 .0072434
------------------------------------------------------------------------------


Is it correct to say the following:
The specification of the model appears to suit the data, given that the unexplained part (the variance of the residual, at 0.0057171) is much smaller than the variance of ID within countries (0.0229282) or the variance of different observations (years) within IDs (0.0350149)

many thanks