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I am running a pooled OLS regression for my thesis. My adjusted r square is 0.74 which is quite high compared to other published studies. I have checked for normality of residuals, serial correlation and homoscedasticity. All the 3 tests meet the conditions for OLS. Should I be concerned about the high adjusted r square? Is there any test I could do to know whether the regression model has no other flaws?

Denish
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    Have you generated graphical diagnostic plots for the regression? If not, that's what you should do next. Look in particular for outlying regressor values (*e.g.*, those with large mahalanobis distance from the mean): a *single* such outlier can create an artificially inflated $R^2$ (which will inflate the adjusted $R^2$). – whuber Nov 27 '16 at 17:57

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The adjusted R square is what it is. Differences with other published studies cold be due to differences in the data and/or the predictor variables.

Michael R. Chernick
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