Dear all!
Arellano-Bond estimator eliminates individual fixed effects, so when using it, we analyze the changes of cross-sections over time. System GMM uses both: equations in differences and in levels. How can we interpret the resulting coefficients? Can we say that they indicate changes over time AND across cross-sections?
Thank you in advance!
Arellano-Bond estimator eliminates individual fixed effects, so when using it, we analyze the changes of cross-sections over time. System GMM uses both: equations in differences and in levels. How can we interpret the resulting coefficients? Can we say that they indicate changes over time AND across cross-sections?
Thank you in advance!
