Dear all,

I am running a panel regression with individual fixed effects. When using the -xtreg, fe- command, I get very low R2 (both for within, between and overall, all ranging from 0.000 to 0.10)

However, on the much quoted page https://www.princeton.edu/~otorres/Panel101.pdf that when reporting the Rsquared for fixed effects models, the R2 from - areg, absorb(id) - is preferred to the R2 obtained from -xtreg, fe-. Is this indeed the case, and if so, why? Indeed, with -areg, absorb(id)- I get an adjusted R2 that is much more sensible (0.63), whilst indeed all the coefficients remain the same, all standard errors have changed, and thus I am a bit confused as to whether it is appropriate to report the R2 from this regression.

Many thanks in advance.