Gabriela Lopez wrote:
> My name is Gabriela Lopez. I want to calculate total factor
> productivity but in the papers I have read the authors first use the
> General Method of Moments. They run an xtabond model and take the
> coefficient of the lagged dependent variable and the capital per worker
> to calculate total factor productivity as a residual. Can anyone tell
> me how to do it exactly or recommend a paper or papers I can read to
> understand it.
Welcome to the list. Try -whelp xtabond- for pointers. Also, try this link
to a paper on Arellano-Bond GMM originally supplied to the list by Padraig
Dixon on July 13:
http://cemmap.ifs.org.uk/docs/cwp0902.pdf
> I have run several xtabond regressions to obtain the coefficients
> mentioned above. Then I calculate the total factor productivity (but I
> am not sure I am doing it correctly) to run OLS regressions using
> variables of trade liberalization but I can't get good results. What
> is my problem?
Can't advise you on that for two reasons: (1) you don't provide any
output; and (2) I'm certainly not a labour economist!
> The Sargan test and the statistics of first and second order
> correlations are described in the xtabond regression in Stata, which
> other test do I have to consider?
Aren't they enough? :)
CLIVE NICHOLAS |t: 0(044)191 222 5969
Politics |e: [email protected]
Newcastle University |http://www.ncl.ac.uk/geps
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