I have a question regarding system-GMM. In this case, it seems that I have a two-step system GMM but I have not specified the instrument variables in the level equation. Is it correct to say that I am estimating a system-GMM, and not mention anything about the level equation?

Code:
. xtabond2 Y l.Y a b c ab ac coalition 
> l.lngdp l.lngdppercapita l.gdpgrowth l.lninflation l.govtexp l.pop14 l.pop65, ///
> gmm(l.Y , lag(1 2) collapse eq(diff)) ///
> iv(a b c ab ac coalition l.lngdp l.lngdpperca
> pita l.gdpgrowth l.lninflation l.govtexp l.pop14 l.pop65, eq(diff)) ///
> nodiffsargan twostep robust
Favoring space over speed. To switch, type or click on mata: mata set matafavor speed
> , perm.

Dynamic panel-data estimation, two-step system GMM
------------------------------------------------------------------------------
Group variable: country                         Number of obs      =       486
Time variable : year                            Number of groups   =        26
Number of instruments = 16                      Obs per group: min =        15
Wald chi2(14) =    146.89                                      avg =     18.69
Prob > chi2   =     0.000                                      max =        20
--------------------------------------------------------------------------------
               |              Corrected
         Y |      Coef.   Std. Err.      z    P>|z|     [95% Conf. Interval]
---------------+----------------------------------------------------------------
         Y |
           L1. |   .7222813   .1701339     4.25   0.000      .388825    1.055738
               |
     a |  -.2317608   .2530301    -0.92   0.360    -.7276908    .2641691
         b |  -.5301456   .5432221    -0.98   0.329    -1.594841    .5345502
          c |  -.0224109    .484336    -0.05   0.963    -.9716921    .9268703
ab |  -.1367733   .3817006    -0.36   0.720    -.8848927     .611346
 ac |  -.0723654   .3836385    -0.19   0.850    -.8242831    .6795523
     coalition |   .2727919   .3676454     0.74   0.458    -.4477798    .9933636
               |
         lngdp |
           L1. |  -11.97239   5.726428    -2.09   0.037    -23.19598   -.7487975
               |
lngdppercapita |
           L1. |   10.03662   5.629337     1.78   0.075    -.9966812    21.06991
               |
     gdpgrowth |
           L1. |   -3.21324   4.289274    -0.75   0.454    -11.62006    5.193584
               |
   lninflation |
           L1. |  -.0736836   .0800735    -0.92   0.357    -.2306248    .0832577
               |
       govtexp |
           L1. |   4.048511   4.055335     1.00   0.318      -3.8998    11.99682
               |
         pop14 |
           L1. |  -.1944994   .1995454    -0.97   0.330    -.5856012    .1966024
               |
         pop65 |
           L1. |  -.2088385   .1905127    -1.10   0.273    -.5822365    .1645594
               |
         _cons |   41.23084   18.69118     2.21   0.027     4.596788    77.86488
--------------------------------------------------------------------------------
Instruments for first differences equation
  Standard
    D.(a b c ab ac coalition L.lngdp
    L.lngdppercapita L.gdpgrowth L.lninflation L.govtexp L.pop14 L.pop65)
  GMM-type (missing=0, separate instruments for each period unless collapsed)
    L(1/2).L.Y collapsed
Instruments for levels equation
  Standard
    _cons
------------------------------------------------------------------------------
Arellano-Bond test for AR(1) in first differences: z =  -2.18  Pr > z =  0.029
Arellano-Bond test for AR(2) in first differences: z =   0.61  Pr > z =  0.544
------------------------------------------------------------------------------
Sargan test of overid. restrictions: chi2(1)    =   1.69  Prob > chi2 =  0.194
  (Not robust, but not weakened by many instruments.)
Hansen test of overid. restrictions: chi2(1)    =   0.89  Prob > chi2 =  0.344
  (Robust, but weakened by many instruments.)


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