Hi users,
I am struggling to understand when to use eq(level) or eq(dif) in the xtabond2 function for the gmmstyle and the ivstyle estimators.
Is it most common/basic to use eq(level) for gmmstyle and eq(dif) for ivstyle? Or how can I figure out which ones to use for my endogenous and exogenous variables?
I have tried to read papers, but I cannot find a clear explanation on how to apply this in Stata.
My goal is to obtain a two-step system gmm. (based on literature).
Thanks a lot. Looking forward to any reply.
I am struggling to understand when to use eq(level) or eq(dif) in the xtabond2 function for the gmmstyle and the ivstyle estimators.
Is it most common/basic to use eq(level) for gmmstyle and eq(dif) for ivstyle? Or how can I figure out which ones to use for my endogenous and exogenous variables?
I have tried to read papers, but I cannot find a clear explanation on how to apply this in Stata.
My goal is to obtain a two-step system gmm. (based on literature).
Thanks a lot. Looking forward to any reply.
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