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st: xtabond and OLS for separate years

From   Kate Ivanova <>
Subject   st: xtabond and OLS for separate years
Date   Sat, 01 May 2004 17:59:00 -0700



I am confused by the results I get using xtabond. I have a panel of 116 countries over 10 years and when I run separate regressions for each year using OLS, my variables (income and income squared) are highly significant (at a 0.001 level). But when I run xtabond with one lag of the dependent variable, they are not significant at all. I wonder why I have such a difference between the results. Any help, any ideas would be greatly appreciated.



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