New version of -ranktest- available on SSC

[Mark Schaffer]

With thanks to Kit Baum, a new version of ranktest by Kleibergen-Schaffer-Windmeijer, version 2.0.03, is now available on SSC Archives.

Tests of rank have various practical applications; in econometrics probably the most common is the test of the requirement in a linear IV/GMM model that the matrix E(z_i x_i') is full rank, where z_i is the vector of instruments and x_i is the vector of endogenous regressors.

The updates to ranktest are extensive and include the addition of GMM-based J-type rank tests as proposed by Windmeijer (2018); see https://ideas.repec.org/p/bri/uobdis/18-696.html.

ranktest is a required component for ivreg2 and related packages. Please note, however, that the new features of ranktest require Stata 13 or higher. If called under version control or by an earlier version of Stata, ranktest will call a new program also included in the package, ranktest11. ranktest11 is essentially the previous version of ranktest version 1.4.01. Because ivreg2 runs under version control, the results reported by the current version of ivreg2 will be unaffected by this update. Similar remarks apply to related packages.

[Wagner Oliveira]

Dear Mark,

Just to document an issue that I had when running ivreg2 on Stata 13.0, with the ranktest and the ivreg2 packages up to date.
It could not perform the command due to the fact that some recent updates seem to require Stata 13.1 onwards.

I got the following error message:

this is version 13.0 of Stata; it cannot run version 13.1 programs
A free update to version 13.1 is available; type update and follow the instructions, or visit
http://www.stata.com/support/updates. If you are not connected to the Internet, you can contact StataCorp to obtain the
latest version.

I was able to solve this issue by adding "version 10:" before the ivreg command line. It worked and generated the same result that I had with a more recent version of Stata.