Statalist The Stata Listserver

[Date Prev][Date Next][Thread Prev][Thread Next][Date index][Thread index]

st: xtabond2 and intercooled Stata 9.2

From   Kit Baum <>
Subject   st: xtabond2 and intercooled Stata 9.2
Date   Tue, 27 Feb 2007 17:47:11 -0500

Anand said:

I am quite new to Stata and I am having trouble using the XTABOND2 program.. either my computer crashes or gives me an error message.

I used the following command...

xtabond2 chasim L.chasim L.chdiff L.asiminflr eta, gmm(L.chasim) iv(L.chdiff L.asiminflr eta) nomata

... and I got the following error message.

Building GMM room to add more variables due to width

With 50 time periods xtabond2 will attempt to create a gazillion instruments, and no matter how many Gb of RAM you have, it will fail. Either limit the lags used in the gmm instruments with the suboption lag( ) or use the collapse option to reduce their number.

More fundamentally, you must consider whether this data set fits the 'small T, large N' criteria that rationalize the DPD (Arellano-Bond) estimator. 50 is not that small, and this may not be the most sensible estimation technique in the case where T is a significant fraction of N.

Kit Baum, Boston College Economics
An Introduction to Modern Econometrics Using Stata:

* For searches and help try:

© Copyright 1996–2015 StataCorp LP   |   Terms of use   |   Privacy   |   Contact us   |   What's new   |   Site index