r.squared function

R squared and adjusted R squared for panel models

This function computes R squared or adjusted R squared for plm objects. It allows to define on which transformation of the data the (adjusted) R squared is to be computed and which method for calculation is used.

r.squared(object, model = NULL, type = c("cor", "rss", "ess"), dfcor = FALSE)

Arguments

• object: an object of class "plm",

• model: on which transformation of the data the R-squared is to be computed. If NULL, the transformation used to estimate the model is also used for the computation of R squared,

• type: indicates method which is used to compute R squared. One of

  "rss" (residual sum of squares),

  "ess" (explained sum of squares), or

  "cor" (coefficient of correlation between the fitted values and the response),

• dfcor: if TRUE, the adjusted R squared is computed.

Returns

A numerical value. The R squared or adjusted R squared of the model estimated on the transformed data, e. g., for the within model the so called "within R squared".

Examples

data("Grunfeld", package = "plm")
p <- plm(inv ~ value + capital, data = Grunfeld, model = "pooling")
r.squared(p)
r.squared(p, dfcor = TRUE)

See Also

plm() for estimation of various models; summary.plm() which makes use of r.squared.