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  • Very big difference between (Within R^2 and Between R^2) in Panel data analysis, What is the problem and how to solve?

    Hello everybody,
    Have a nice day!

    In this regression, I meant to explore the relationship between net surplus generated by some agricultural cooperatives, and other variables, such as total assets (SqLogAss + LogAss), (debt/Ass)%, consumption complex, grants in year t-1, and sum number of managing members, for years (2021-2023). the results are as below:

    Click image for larger version

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    Unfortunately, there is a very big difference between (Within R^2 and Between R^2), what is the problem and how to solve?
    Waiting for your advices and help!

    Thanks very much!
    Maha Natsheh

  • #2
    Maha:
    1) when using the -fe- estimator, the within R_sq is what you should look at;
    2) the unreasonable 0.9999 is due to model overfitting. You can't do nothing realiable with only 25 obs, but descriptive statistics.
    Kind regards,
    Carlo
    (StataNow 18.5)

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