Hello,
I am trying to run a system gmm model on Stata to test the effect of capital on bank profitability. I have tested that capital is endogenous and I have a set of control variables (liquidity, loans ratio, cost-to-income ratio, bank size, loan loss reserves ratio, off-balance sheet items, Herfindahl-Hirschman Index, GDP growth and inflation). I also have panel data, but I am a bit stuck on the system gmm model. This is a very important project, so I would immensely appreciate any help, tips, or guidance! Even if it's the smallest comment, it would help me incredibly and I would be grateful from the bottom of my heart!
Best regards,
Ulla
I am trying to run a system gmm model on Stata to test the effect of capital on bank profitability. I have tested that capital is endogenous and I have a set of control variables (liquidity, loans ratio, cost-to-income ratio, bank size, loan loss reserves ratio, off-balance sheet items, Herfindahl-Hirschman Index, GDP growth and inflation). I also have panel data, but I am a bit stuck on the system gmm model. This is a very important project, so I would immensely appreciate any help, tips, or guidance! Even if it's the smallest comment, it would help me incredibly and I would be grateful from the bottom of my heart!
Best regards,
Ulla
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