greetings to everyone.
pls, I have panel data, some will difference it to solve the time-variant problem while some used year_dummy. my question is, do we have to difference the data before including the year dummies or it is either one? Also, is it that the Gmm( xtabond, xtabon2) does the differencing internally or I have to difference before using the variables?
please how do I create a year dummy so as to get the base year? I will really be glad if it can get the procedure or do-file on year dummies and on GMM
pls, I have panel data, some will difference it to solve the time-variant problem while some used year_dummy. my question is, do we have to difference the data before including the year dummies or it is either one? Also, is it that the Gmm( xtabond, xtabon2) does the differencing internally or I have to difference before using the variables?
please how do I create a year dummy so as to get the base year? I will really be glad if it can get the procedure or do-file on year dummies and on GMM
