First of all, I have to admit that I am really a super newbie in econometric.
I want you to help me running GMM estimation in Stata 13 MP.
The data I have contain "net sale growth - nsg" proxy for the growth of firms; "net income to sales - nis" proxy for the profitability of firms; ln(total assets) and debt/assets D/A are control variables. I collected data from 2007-2013.
The first model is static, as follow: nsg(i,t) = a +b1 nis(i,t-1) + b2 nis(i,t-2) + b3 control(i,t-1) + u
and : nis(i,t) = a + b1 ngs(i, t-1) + b2 ngs(i, t-2) +b3 control(i,t-1) + u
the dynamic model is : nsg(i,t) = a + yi nsg(i,t-1) + b1 nis(i,t-1) + b2 nis(i,t-2) + b3 control(i,t-1) + u
and: nis(i,t) = a +yi nis(i,t-1) + nsg(i,t-1) + b2 nsg(i,t-2) + b3 control(i,t-1) + u
So, what must I do now? I cannot imagine what to do!
I don't even know the command in stata.
https://app.box.com/s/ftg97qlonsqs84gfn6slbdfy6c0gjfob
Here is the paper that I'm trying to follow with the data in my country, Vietnam.
Please help me! I really appreciate!
P/S: I'm not really good at English, so hopefully this thread doesn't make you be confused!
I want you to help me running GMM estimation in Stata 13 MP.
The data I have contain "net sale growth - nsg" proxy for the growth of firms; "net income to sales - nis" proxy for the profitability of firms; ln(total assets) and debt/assets D/A are control variables. I collected data from 2007-2013.
The first model is static, as follow: nsg(i,t) = a +b1 nis(i,t-1) + b2 nis(i,t-2) + b3 control(i,t-1) + u
and : nis(i,t) = a + b1 ngs(i, t-1) + b2 ngs(i, t-2) +b3 control(i,t-1) + u
the dynamic model is : nsg(i,t) = a + yi nsg(i,t-1) + b1 nis(i,t-1) + b2 nis(i,t-2) + b3 control(i,t-1) + u
and: nis(i,t) = a +yi nis(i,t-1) + nsg(i,t-1) + b2 nsg(i,t-2) + b3 control(i,t-1) + u
So, what must I do now? I cannot imagine what to do!

I don't even know the command in stata.
https://app.box.com/s/ftg97qlonsqs84gfn6slbdfy6c0gjfob
Here is the paper that I'm trying to follow with the data in my country, Vietnam.
Please help me! I really appreciate!
P/S: I'm not really good at English, so hopefully this thread doesn't make you be confused!

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