Dear
I have tried to find solution to my question, but I could not...
I combine moment conditions for the forward-orthogonal transformed model with moment conditions for the model in levels, with xtabond2 system GMM
do I need to do Unit root tests? I have unbalanced panel, only 8 years. I have macroeconomic variables such as credit over GDP, broad Money over GDP, government expense etc.
does orthogonal transformation helps in a way first difference helps with unit root?
thank you
r, kovac
I have tried to find solution to my question, but I could not...
I combine moment conditions for the forward-orthogonal transformed model with moment conditions for the model in levels, with xtabond2 system GMM
do I need to do Unit root tests? I have unbalanced panel, only 8 years. I have macroeconomic variables such as credit over GDP, broad Money over GDP, government expense etc.
does orthogonal transformation helps in a way first difference helps with unit root?
thank you
r, kovac
