Xtreg random effects- interpretation of R-sq (between, within)

[Hania ElBanhawi]

Hello -

After running a RE model using xtreg, re ve(robust), to adjust for heterogeneity at the cluster level, I am wondering what the interpretations of R-sq are for within & between R-sq. Specifically, a low within R-sq and a high between R-sq.
Thank you,
Hania

[Carlo Lazzaro]

Hania:
not sharing what you typed and what Stata gave you back (as per FAQ) does not help.
Short answer: if -xtreg,re- is correctly specified, high between R-sq is good, Within R-sq meaning is negligible under -xtreg,re-.