I have a problem with the xtabond command. I would like to apply a GMM regression to my panel data. The state variables (two) should be lagged one period and the other variables (5) should be lagged two periods (the statistical approach is similar to Bailliu J. (2000) "Private Capital Flows, Financial Development, and Economic Growth in Developing Countries" and Caselli et al. (1996) "Reopening the Convergence Debate: A New Look at Cross-Country Growth Empirics.” ). I read the PDF file for xtabond, but unfortunately, I couldn't figure out the best way to set up the code. I tried the following:
Code:
import excel , sheet("Komplett ohne Fomel") firstrow clear
gen logGDP = log(GDP)
gen logInIncome = log(InitialIncome)
*Generating panel-dataset
xtset CountryNumber Year
*GMM Regression
xtabond logGDP l(0/1).(logInIncome InitialSchooling) l(0/2).(ckaopen Governmentconsumption Inflation LawandOrder CorruptioninGovernment) , lags(2) level(90) vce(robust)
Does anyone have a suggestion on how I can best solve this so that I proceed similarly to, for example, Bailliu (2000) and Caselli et al. (1996)?
P.S I use the Stata/BE 17.0 for Windows (64-bit x86-64) version.
