Dear All

i am using the following command to estimate a twostep diff GMM growth model:

xtabond2 growthrate

my endogenous vars are in

can you pls explain how do i interpret this: as far as i know if Hansen test is so low it means that i have instrument proliferation right? ive tried all the possible ways to mitigate this but it still appears 0.0 so maybe i use a wrong command??

many thanks

marialena

i am using the following command to estimate a twostep diff GMM growth model:

xtabond2 growthrate

**gdpcapt_1 fdi l.fdi**findepth**rd caplab**popden _Iyear_2007 _Iyear_2008 _Iyear_2009 _Iyear_2010 _Iyear_2011 _Iyear_2012 _Iyear_2013 , gmm(gdpcapt_1) gmm(l.fdi l.rd l.caplab )iv(findepth popden _Iyear_2007 _Iyear_2008 _Iyear_2009 _Iyear_2010 _Iyear_2011 _Iyear_2012 _Iyear_2013 ) noleveleq twostep robustmy endogenous vars are in

**bold**and my results in the attached filecan you pls explain how do i interpret this: as far as i know if Hansen test is so low it means that i have instrument proliferation right? ive tried all the possible ways to mitigate this but it still appears 0.0 so maybe i use a wrong command??

**Sargan test of overid. restrictions: chi2(114) = 454.70 Prob > chi2 = 0.000**

(Not robust, but not weakened by many instruments.)

Hansen test of overid. restrictions: chi2(114) = 204.10 Prob > chi2 = 0.000

(Robust, but weakened by many instruments.)(Not robust, but not weakened by many instruments.)

Hansen test of overid. restrictions: chi2(114) = 204.10 Prob > chi2 = 0.000

(Robust, but weakened by many instruments.)

many thanks

marialena

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