Hi everybody!
I am a beginner in econometrics and so I really appreciate your help!
I estimated a dynamic panel data model with xtabond2 to obtain the results
in level equations and not in differences as xtabond does. But: How does
xtabond2 remove the unobserved individual effect? xtabond removes it by
taking first difference and so it quites, but how does xtabond2 do this?
and in general: What is exactly the difference between system GMM and 2SLS?
I thank you a lot for your answer!
Best,
Mich�le
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