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re: RE: st: Arellano-Bond test for AR(2) in first differences after


From   Christopher Baum <[email protected]>
To   "[email protected]" <[email protected]>
Subject   re: RE: st: Arellano-Bond test for AR(2) in first differences after
Date   Fri, 27 Jan 2012 14:27:31 -0500

<>
Thank you Kit, but this will run difference GMM. What i want TO ESTIMATE is system GMM and then I need to calculate the Arellano-Bond test for AR(2) in first differences. As there are a large number of missing observations, I am estimating the model using xtivreg2 with gmm2s option instead of xtabond2.


Well, take off the noleveleq option and it will do system GMM. 
Use the forward orthogonal deviations (FOD) rather than first differencing in xtabond2, which will mitigate the missing data problems.

Kit Baum   |   Boston College Economics and DIW Berlin   |   http://ideas.repec.org/e/pba1.html
An Introduction to Stata Programming   |   http://www.stata-press.com/books/isp.html
An Introduction to Modern Econometrics Using Stata   |   http://www.stata-press.com/books/imeus.html


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