Hi,
I’ve got an assignment for an econometric course, and for this course we are asked to repeat an econometric procedure done in a SSIC ranked article.
The paper I have chosen is attached just in case you want to get a better idea, but I will try describe my issue as best as possible.
The equation estimated is;
g(Y/L)i,t = B0 + B1g(co2/L)i,t + B2g(FDI/L)i,t + B3g(K/L)i,t + e i,t
Where g stands for the growth rate of a variable.
This equation here is estimated using a dynamic panel specification with one-period lagged levels of the dependent variables. The equation is estimated using Arellano-Bond (1991) GMM estimator. Another point to note is that the author takes the first differences when applying GMM.
The results that correspond to this equation is;
GDP per capita (growth) = 0.218 + 0.375GDP(-1) + 0.442FDI - 0.289C02 + 0.263capital
AR2test = 0.089
What I am interested to know is only for specification 1 (results above). Mainly Arellano-Bond result.
I have attached the file that I used in eviews, that tries to capture the same effects described in specification 1. The end result of this is called ‘eq01’ in my eviews workfile. I would appreciate it if you would be able to tell me if I have managed to estimate this correctly by taking a look at my workfile. Some additional information that might be useful is that in step 5 out of 6, in the ‘Dynamic Panel Data Model Wizard’, In the transform box I put explanatory variables ‘GRFDI’, ‘GRCO2’, ‘GRGCF’, whilst in the no transform box I didn’t put anything.
I hope I have managed to describe the issue as easy to follow as possible. Thank you for your time in reading this.
Estimating a GMM regression
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Estimating a GMM regression
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- Co2 and Economic Growth - Cross-sectional data.pdf
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- new workfile.wf1
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