Hello to everyone, I am searching in terms of the effect of the uncertainty on the saving and in one part of my robustness check I want to do a Xtabond2 . I read the construction of doing xtabond2 from David Roodman . but I become confused. I have a panel data from 1996 to 2017. and :
saving (i,t)= b0+b1saving (i,t-1)+b2 uncertainty (i,t-1)+ b3 X(i,t-1) +vt + vi+ e(i,t)
and x(i,t-1) is a vector of controls, which in the baseline model includes only human capital and per capita income.
in the Xtabond2 I want to address a solution to the possible endogeneity problem between economic uncertainty and the saving by instrumenting them with suitable lagged variables. To obtain efficient findings in the System GMM estimations, I need evidence for the validity of the first-order autocorrelation in the residuals, but second-order autocorrelation must be rejected. Then We run the Sargan test to avoid possible over-identification problems.
the more I read the more I become confused to how to do this.
Thank you very much in advance.
Regards,
Related Posts with Xtabond2 command system GMM.
Interpolation on null values with the most frequent valueHello. In a dataset like this I need to replace the null values of x1 with the most frequent value o…
Interaction intepretationDear Statalist: I have the following question on how to interpret the results of the ## interaction…
Asking for definition of various types of treatment?Borusyak, 2021 has a sentence We further discuss the implications of our results when treatment …
Solution for inlist - expression too longHi Statalisters, I just would like to share a solution for the inlist limit of 10 string arguments,…
Detecting careless responses in STATAHello, I wonder if anyone could share any tips or tricks for detecting careless responses (unengag…
Subscribe to:
Post Comments (Atom)
0 Response to Xtabond2 command system GMM.
Post a Comment