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st: Xtabond 2 and dummy variables

From   Ryan A Compton <>
Subject   st: Xtabond 2 and dummy variables
Date   Fri, 14 Jul 2006 12:21:16 -0500

I am using Xtabond2 and have a 0-1 dummy variable that is intended to capture
whether or not a country experienced political instability during a given 5 year
period (my panel is based on 5 year averages). Would I include the dummy
variable in the "gmm style" instruments or "iv style" instruments and would I
require any suboptions as well? I basically want to ensure the dummy is included
correctly in the Xtabond2 command line.

Ryan Compton
Department of Economics
University of Manitoba
Winnipeg, Canada

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