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st: Extabond2 twostep GMM


From   Lola Arieza <[email protected]>
To   "[email protected]" <[email protected]>
Subject   st: Extabond2 twostep GMM
Date   Thu, 15 Aug 2013 13:12:58 +0100

Dear Statalist,

I am currently using extabond2 to estimate a two step system GMM dynamic panel. The regression results are fine with no autocorrelation in second order and the result from sargan test indicates that the instruments are valid. 

However when i include the corrected standard error (twostep robust), many of the coefficient estimate turns to be not significant, while the results still detect no autocorrelation in second order and the Sargan test shows valid instrument. 

Thereby, is this mean that my first GMM regresion (without robust) is not valid? Does using the result from the second one (with robust) is the only way in this case? 

Thanks in advance for any assistance.

Best regards,

Lola Arieza
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