I have a question about xtabond.We can use --estat abond--to do the AR test of the error terms.But I want to do AR test step by step.I mean ,firstly, get the error and then use --reg--command.
Here is the example.
Code:
webuse abdata,clear xtabond n w k, twostep estat abond Arellano-Bond test for zero autocorrelation in first-differenced errors +-----------------------+ |Order | z Prob > z| |------+----------------| | 1 |-2.4955 0.0126 | | 2 |-.52671 0.5984 | +-----------------------+ H0: no autocorrelation predict e,e reg e L.e L2.e Source | SS df MS Number of obs = 611 -------------+---------------------------------- F(2, 608) = 2845.84 Model | 75.5173265 2 37.7586633 Prob > F = 0.0000 Residual | 8.06695695 608 .013268021 R-squared = 0.9035 -------------+---------------------------------- Adj R-squared = 0.9032 Total | 83.5842835 610 .137023416 Root MSE = .11519 ------------------------------------------------------------------------------ e | Coef. Std. Err. t P>|t| [95% Conf. Interval] -------------+---------------------------------------------------------------- e | L1. | 0.681 0.042 16.35 0.000 0.599 0.763 L2. | 0.254 0.041 6.22 0.000 0.174 0.334 | _cons | -0.013 0.005 -2.79 0.006 -0.023 -0.004 ------------------------------------------------------------------------------
Anyone can give some suggestions?I want to know the calculation process behind --estat abond--.
Many thanks in advance.
Best regards.
Raymond
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