Hi,
Im trying to estimate an equation in the attached file using GMM (the file provides a simplified example of when I run into problems. However, when I use both current and lagged variables (lproductivity_manufact) as independent variables (also added as instruments) i get an error message that the order condition is violated (Order condition violated - Insufficient instruments). When I use only the curent value, everything works fine. I guess i must be doing something wrong, but cannot figure out what is the problem. If anyone knows what is the problem, please let me know.
Best,
Andreas
Question on GMM estimation
Moderators: EViews Gareth, EViews Moderator
Question on GMM estimation
- Attachments
-
- wage_formation_code_test_file.prg
- (1.19 KiB) Downloaded 235 times
-
- sweout.xls
- (12.41 KiB) Downloaded 222 times
-
- Non-normality and collinearity are NOT problems!
- Posts: 3775
- Joined: Wed Sep 17, 2008 2:25 pm
Re: Question on GMM estimation
You can't have fewer instruments than coefficients.
Return to “Econometric Discussions”
Who is online
Users browsing this forum: No registered users and 19 guests