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  • Problems with xtabond2

    Good day. I am trying to use xtabond2 command in Stata 14.2 to estimate a dynamic panel date model on examining commercial banks performance in Zimbabwe with a lag for the dependent variable, N=11 and T=9. I have installed xtabond2. I am running the following model:
    xtabond2 logroa l.logroa dlogbs logcar dlogliq loggdp dlogms lognpls, nolelq gmm(l.logroa) iv(dlogbs logcar dlogliq loggdp dlogms lognpls)

    After trying to run this, stata is showing the following error message:
    favoring space over speed. to switch, type or click on mata: mata set matafavor speed, perm
    unknown egen function max()
    stata(): 3598 stata returned error
    xtabond2_mata(): -function returned error
    <istmt>: -function returned error

    I clicked on mata: mata set matafavor speed, perm and stata states that set matafavor preference recorded.
    I estimate my model again but stata is telling me factor variables are not allowed. Please help on how to proceed.

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