problem of small coefficients in GMM estimations

[Smara Ansar]

Hi,
I am new to statalist. I am currently working with xtabond2 and xtdpd. I want to ask what are the implications if we get small values of coefficients while applying GMM techniques.?
for example, the value is 0.0000539.....

[Phil Bromiley]

You'll increase your chances of a useful answer by following the FAQ on asking questions - provide Stata code in code delimiters, readable Stat output, and sample data using dataex (or illustrate the problem using a Stata supplied data set).

There is no inherent problem with a small parameter. Sometimes, it is useful to rescale the variable (and hence the parameter) simply for display purposes. While in some cases folks worry about rounding error in extremely small parameters, that is seldom an actual problem. So, if you don't like 0.0000539, divide your x by 100000.

[Smara Ansar]

@Phil Bromiley Thankyou for your kind suggestions.