Hello,
The mean chi^2 (as well as the median chi^2) is a measure of the “inflation” in a GWAS, e.g. the amount of lift above the null expectation on a QQ plot. Under a null hypothesis of zero genetic effects genome-wide, the expected mean chi square is 1. Values > 1 indicate inflation, which can reflect either true genetic effects or population stratification or other biases. Thus the denominator mean(chi^2)-1 is an index of the amount of inflation in the GWAS.
One of the primary aims of LD score regression is to distinguish inflation from true genetic effects from inflation due to population stratification/etc. Under the LD score model, the intercept term from the regression is 1 plus a population stratification term (regardless of true genetic effects), and thus equal 1 under the null hypothesis that there is inflation from no population stratification. The numerator intercept-1 thus indexes the amount of inflation from stratification and not from genetics.
Putting these pieces together, (intercept-1)/(mean(chi^2)-1) is the ratio of the amount of inflation from stratification only to the amount of inflation from stratification + true genetic effects. If the observed inflation in a GWAS just reflects population stratification it should be approx. 1, and if the inflation reflects just genetic effects it should be approx. 0 (it’s undefined if there’s no inflation in the GWAS from stratification or genetics). Values between 0 and 1 indicate the relative balance of these factors.
So a statement that 8% of the inflation in chi^2 can be attributed to factors other than genetic effects reflects a ratio=0.08. For association results, this suggests that the influence of population stratification/etc is relatively limited and most of the observed signal is polygenic signals. To address that remaining 8% inflation, it could be desirable to apply genomic control using the LD score intercept as the correction factor in place of lambda_GC. For heritability results, the ratio should have limited impact, since that term exists in the LD score regression model to control for the population stratification effects to get a unbiased estimate of the snp-heritability.
Cheers,
Raymond