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  • How to reduce the number of GMM instruments in xtendothresdpd with a small panel (N=8, T=22)?

    Hi everyone, I need help reducing the number of instruments when using Kremer’s (2013) threshold effects method (implemented via the `xtendothresdpd` command). While I get good results, the number of instruments is very high—well over 30—even though I am working with a panel of only 8 countries. Could you help me find a way to reduce this? I am currently a Master’s student.
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