. xtabond2 Panel Data Analysis Error:

[Sikirulai Akande]

I am running a GMM analysis using . xtabond2.

xtabond2 lnER 1.lnER lnIT lnDT lnGDP lnINF Yr*, gmm(1.lnER) iv(InIT lnDT lnGDP lnINF Yr*)
nolevelq nodiffsargan robust small


xtabond2 lnER 1.lnER lnIT lnDT lnGDP lnINF Yr*, gmm(1.lnER) iv(InIT lnDT lnGDP lnINF Yr*)
two step robust orthogonal small

ErrorMessage:
lnER: factor variables may not contain noninteger values
st_data(): 3598 Stata returned error
xtabond2_mata(): - function returned error
<istmt>: - function returned error

[William Lisowski]

The error message

lnER: factor variables may not contain noninteger values

tells you that you used factor variable notation on a variable that contains non-integer values.

Your code includes

.. lnER 1.lnER ..

where the character highlighted in red is the digit 1, which is factor variable notation.

Perhaps you wanted time series notation to give you the lagged value of lnER? In that case try

.. lnER L.lnER ..

or

.. lnER l.lnER ..

using an upper-case or lower-case letter L where you now have the digit 1.