# Need help interpreting random-effects output

#### kriscrosssss

##### New Member
Attached is the output I received in Stata for my random-effects model. I have three time-invariant variables (WS, WRLURI, UA) and three time-varying variables (A_TP, A_GDP, A_E). I'm not sure how to 1) interpret the results of the regression and 2) interpret the results of the LM test for random effects.

Does anyone know what this means? Any help is much appreciated!

#### kriscrosssss

##### New Member
Here are the results again - didn't realize the image would be so small!

. xtreg y WS WRLURI UA A_TP A_GDP A_E i.Year, re

Random-effects GLS regression Number of obs = 235
Group variable: MSACity Number of groups = 47

R-sq: within = 0.4318 Obs per group: min = 5
between = 0.1966 avg = 5.0
overall = 0.4046 max = 5

Wald chi2(10) = 152.20
corr(u_i, X) = 0 (assumed) Prob > chi2 = 0.0000

------------------------------------------------------------------------------
y | Coef. Std. Err. z P>|z| [95% Conf. Interval]
-------------+----------------------------------------------------------------
WS | .000186 .000257 0.72 0.469 -.0003177 .0006897
WRLURI | -.0119519 .0064825 -1.84 0.065 -.0246572 .0007535
UA | -.0149544 .0195226 -0.77 0.444 -.053218 .0233091
A_TP | .000012 .0002037 0.06 0.953 -.0003873 .0004112
A_GDP | .2636179 .1250473 2.11 0.035 .0185296 .5087062
A_E | .0638738 .0554449 1.15 0.249 -.0447962 .1725438
|
Year |
2007 | -.0038081 .0095657 -0.40 0.691 -.0225565 .0149404
2008 | -.0185448 .0105911 -1.75 0.080 -.0393029 .0022133
2009 | -.07538 .012357 -6.10 0.000 -.0995993 -.0511607
2010 | -.0554357 .0096461 -5.75 0.000 -.0743417 -.0365298
|
_cons | .02833 .0128876 2.20 0.028 .0030707 .0535893
-------------+----------------------------------------------------------------
sigma_u | 0
sigma_e | .04607938
rho | 0 (fraction of variance due to u_i)
------------------------------------------------------------------------------

. xttest0

Breusch and Pagan Lagrangian multiplier test for random effects

y[MSACity,t] = Xb + u[MSACity] + e[MSACity,t]

Estimated results:
| Var sd = sqrt(Var)
---------+-----------------------------
y | .0033147 .0575735
e | .0021233 .0460794
u | 0 0

Test: Var(u) = 0
chibar2(01) = 0.00
Prob > chibar2 = 1.0000