Hello, my case is described below and I would like help on how should I run One step system GMM using the ribon and not code.
My data consists of Banks which take unique ID meaning I got N=118 and then YEAR T=20 from 1999 to 2018.
I got my Dependent variable ROA which has approximately 1860 observations from the total 2360 meaning the difference represents missing values.
Then I have almost 30 variables. Some of them are Bank specific meaning they vary across years and approximately i got 1400-1800 out of 2360 total observations for them.
Then I have Industry-specific and Macroeconomic variables that have 20 values that get repeated across the years in every firm.
In total from 75.000 observations, I got actual values in 68.000.
When I xtset it says that it is strongly balanced given that all years exist in every N.
I concluded Fixed effects with cluster-ID and Time effects are the best however there is heteroscedasticity and serial correlation and this is a micro panel so I'm led towards One step System GMM!
Regarding results I get R squares of approximately 87-89 and significant relationships for most bank-specific however I get almost all macroeconomic significant as well so I don't know if it's biased since fixed effects is not good for estimating variables that don't vary across time.
If u need additional info I can provide.
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