st: xtabond command

[Kate Ivanova <kivanova@usc.edu>]

I am trying to use the xtabond command but am puzzled whether the estimator that Stata produces is designed for fixed or random effects?

 

Also, I do not understand whether the xtabond command automatically first differences all the variables in the model or whether I have to do that separately before I use the command?

 

I would appreciate any help with that.