Random effects Model - Mathematical Equation

[Konstantin Wiesemann]

Hello STATA friends,

I have a rather simple Question about the mathematical equation for my model:
I'm running a random effects Regression. ESG is my continous dependent variable, Sh my continous independent variable and Pa my binary Independent variable. logsize, performance, RD and diversity are all Control variables.

 xtreg $ylist $xlist logsize risk performance RD diversity, re

Random-effects GLS regression                   Number of obs     =      2,774
Group variable: comp                            Number of groups  =        671

R-sq:                                           Obs per group:
     within  = 0.0336                                         min =          1
     between = 0.0896                                         avg =        4.1
     overall = 0.0527                                         max =          8

                                                Wald chi2(7)      =     132.66
corr(u_i, X)   = 0 (assumed)                    Prob > chi2       =     0.0000

------------------------------------------------------------------------------
         ESG |      Coef.   Std. Err.      z    P>|z|     [95% Conf. Interval]
-------------+----------------------------------------------------------------
          Sh |  -.0611161   .0135545    -4.51   0.000    -.0876824   -.0345498
          Pa |  -8.246339   .8502543    -9.70   0.000    -9.912807   -6.579871
     logsize |   .4125264    .265325     1.55   0.120    -.1075011    .9325539
        risk |   .0036398   .0184132     0.20   0.843    -.0324493     .039729
 performance |  -.0037927   .0077694    -0.49   0.625    -.0190204     .011435
          RD |   .8626384   .8165424     1.06   0.291    -.7377553    2.463032
   diversity |  -.0120738   .0285519    -0.42   0.672    -.0680344    .0438868
       _cons |   49.24671   4.765032    10.34   0.000     39.90742    58.58601
-------------+----------------------------------------------------------------
     sigma_u |  10.137778
     sigma_e |   18.66254
         rho |  .22784865   (fraction of variance due to u_i)
------------------------------------------------------------------------------

Is my mathematical equation describing the model correct?




Kind regards,
Konstantin

[Carlo Lazzaro]

Konstantin:
set aside screenshots, which are difficult to read, your code seems OK but repeats beta3 coefficient twice.