exogenous variables in ivstyle( )

[shifting mt]

For example: xtabond2 Y Ylag X1 X2 X3 ... Xn gmm(X1 X2 X3...Xn) iv(Z) small robust


Can someone explain exogenous variables in ivstyle(Z) please? what is the relationship between Z and Y? Can Z be some independent variables (X1 to Xn) used in the main equation?


If Y is return on asset ROA (firm's specific) can i put GDP or interest rate as strict exogenous variables ?


thank you

[shifting mt]

whilst iv( ) is an option for GMM, can i just use "xtabond2 Y Ylag X1 X2 X3 ... Xn gmm(X1 X2 X3...Xn) small robust" to run the model?

[Sabrin Rahman]

Hi I am havingthe same problem did you get your answers