Also, in xtabond2 you can use orthogonal deviations if you have gaps in your
panel (to maximize the sample size).
Best,
Johan Hellstrom
>I think is better to use
>xtabond2 command
>I have estimated a similar model using xtanbon2 command
>Example:
>xtabond2 depvar depvar_1 indepvar1 indepvar2, gmm(depvar_1 , lag(2 3))
>iv(indepvar1) small
>
>In adition you can include the noleveleq option
>
>I hope this helps
>
>In�s
>
>> Dear Statalists,
>>
>> I am trying to estimate a dynamic growth regression with both endogenous
>> and predetermined variables.
>>
>> gdp(t) = (1+b)gdp(t-1) + X(t-1) + fe + e(t)
>>
>> Being a beginner in stata I was wondering if you could help me with the
>> following two questions:
>>
>> 1.) To use difference GMM I use the following command
>>
>> xtabond gdp, endogenous(x....) pre(lprimary lseconday ltertiary)
>>
>> where the latter referes to lagged education attainment rates and x for
>> population growth, say.
>>
>> With this specification I do not seem to pass the Sargan test and was
>> wondering if anyone has a suggestion as to how to reformulate the command
>> to increase my chances of passing the test.
>>
>> 2) My panel (N=89 T=9) is unbalanced. How does xtabond accounts for that
>/
>> how do I adjust my estimators to use the entire dataset without having to
>> drop unbalanced observations.
>>
>> many thanks in advance!
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