I'm learning how to use the command xtabond2, but I'm not sure about a few things in the results which I couldn't understand. I read parts of the famous article of Roodman of 2009 but I didn't solve the issues.
From a technical point of view I didn't understand why sometimes the difference in Hansen test is not present - my idea is that it can't be done but I'm not able to explain technically why
I post one model as an example to show my result
Code:
xtabond2 LECI L.LECI LGCF LP LSFI LPA LHC LTO LFDI LGC , gmm(L.LECI, lag(1 6) collapse ) iv( LGCF LP LSFI LPA LHC LTO LFD > I LGC ) robust twostep 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: Code Number of obs = 1038 Time variable : year Number of groups = 93 Number of instruments = 16 Obs per group: min = 1 Wald chi2(9) = 651.63 avg = 11.16 Prob > chi2 = 0.000 max = 16 ------------------------------------------------------------------------------ | Corrected LECI | Coefficient std. err. z P>|z| [95% conf. interval] -------------+---------------------------------------------------------------- LECI | L1. | .345666 .126138 2.74 0.006 .0984402 .5928919 | LGCF | -.157589 1.114522 -0.14 0.888 -2.342012 2.026834 LP | 1.420067 .6380981 2.23 0.026 .1694178 2.670716 LSFI | -2.405806 .8000958 -3.01 0.003 -3.973965 -.8376465 LPA | .3219948 .2495487 1.29 0.197 -.1671116 .8111011 LHC | 5.588163 2.899331 1.93 0.054 -.0944215 11.27075 LTO | 3.191879 1.300292 2.45 0.014 .6433525 5.740405 LFDI | .2704359 .3048973 0.89 0.375 -.3271518 .8680236 LGC | 1.893409 1.265654 1.50 0.135 -.5872276 4.374046 _cons | -37.55127 15.16168 -2.48 0.013 -67.26762 -7.834926 ------------------------------------------------------------------------------ Instruments for first differences equation Standard D.(LGCF LP LSFI LPA LHC LTO LFDI LGC) GMM-type (missing=0, separate instruments for each period unless collapsed) L(1/6).L.LECI collapsed Instruments for levels equation Standard _cons LGCF LP LSFI LPA LHC LTO LFDI LGC GMM-type (missing=0, separate instruments for each period unless collapsed) D.L.LECI collapsed ------------------------------------------------------------------------------ Arellano-Bond test for AR(1) in first differences: z = -3.13 Pr > z = 0.002 Arellano-Bond test for AR(2) in first differences: z = 0.22 Pr > z = 0.829 ------------------------------------------------------------------------------ Sargan test of overid. restrictions: chi2(6) = 24.85 Prob > chi2 = 0.000 (Not robust, but not weakened by many instruments.) Hansen test of overid. restrictions: chi2(6) = 6.34 Prob > chi2 = 0.386 (Robust, but can be weakened by many instruments.) Difference-in-Hansen tests of exogeneity of instrument subsets: GMM instruments for levels Hansen test excluding group: chi2(5) = 6.33 Prob > chi2 = 0.276 Difference (null H = exogenous): chi2(1) = 0.01 Prob > chi2 = 0.909
Any help is appreciated.
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