I have a model that controls for many fixed effects and clustered standard errors by one of the controlled fixed effects. I found reghdfe gives me very different adjusted R-squared when clustering standard errors vs. not clustering standard errors. But areg gives the same adjusted R-squared regardless of clustering or not clustering standard errors. I'd like to ask:
- Should we generally trust the adjusted R-squared from reghdfe when controlling for several fixed effects and also clustering at a level that is controlled as fixed effects?
- Does anyone know how areg estimate adjusted R-squared? I didn't find it in the areg manual.
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