Hi,
I am currently attempting a dynamic specification of my model which uses panel data by using the Arellano–Bond Estimation -xtdpdsys- although from my understanding I need to have a lagged dependent variable (which I have) as well as predetermined regressors and strict exogeneity assumption violation.
I was hoping to receive some guidance on how I could test for predetermined regressors and the strict exogeneity assumption violation so I can confirm the suitability of my model.
Any help would be appreciated.
This is an image of the dynamic model I am aiming to use.
I am currently attempting a dynamic specification of my model which uses panel data by using the Arellano–Bond Estimation -xtdpdsys- although from my understanding I need to have a lagged dependent variable (which I have) as well as predetermined regressors and strict exogeneity assumption violation.
I was hoping to receive some guidance on how I could test for predetermined regressors and the strict exogeneity assumption violation so I can confirm the suitability of my model.
Any help would be appreciated.
This is an image of the dynamic model I am aiming to use.
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