Notice: On April 23, 2014, Statalist moved from an email list to a forum, based at statalist.org.
[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]
st: xtabond2 subsamples dummies
From
Sabina Kummer <[email protected]>
To
[email protected]
Subject
st: xtabond2 subsamples dummies
Date
Thu, 11 Nov 2010 10:11:30 +0100 (CET)
Dear all,
I have a sample of 56 countries and I perfom xtabond2 (system GMM) in order to estimate GDP growth. As my sample of countries is heterogeneous, I would like to perform the same regressions for lower income countries and higher income countries. I would like to avoid to split the sample into 2 sub-samples in order to keep the same number of observations (and of degrees of freedom).
So, in order to get the results for higher income countries, I create a dummy (d=1) for this category of countries. Then, I use the same specification as for the same sample but I multiply each variable by the dummy. I would like to know whether this way of doing is correct.
Example - My Stata commands are the following:
whole sample: xtabond2 fdiratio l(1/1).fdiratio l(1/1).gdp i.year, gmm(fdiratio, laglimits(2 2)) gmm(fdiratio, laglimits(2 11) collapse) twostep robust small
high income countries: xtabond2 fdiratio l(1/1).(d*fdiratio) l(1/1).(d*gdp) i.year, gmm(fdiratio, laglimits(2 2)) gmm(fdiratio, laglimits(2 11) collapse) twostep robust small
Many thanks in advance for your help.
Kind regards.
Sabina
*
* 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/