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From | Ari Dothan <ari.dothan@gmail.com> |
To | statalist@hsphsun2.harvard.edu |
Subject | st: MA(1) process |
Date | Fri, 9 Jul 2010 18:29:33 +0300 |
Hi Statalisters, I am using a gmm procedure for dynamic panels which makes it possible to fit a model with an MA(1) error structure (moving average (1st order). Most other procedures, such as fixed effects, use the AR(1) error structure. Could anyone explain me in layman’s terms what is the difference between the MA(1) and the AR(1) error structures? Why, and when, should one be used rather than the other? Thanks -- Ari Dothan * * For searches and help try: * http://www.stata.com/help.cgi?search * http://www.stata.com/support/statalist/faq * http://www.ats.ucla.edu/stat/stata/