Help GMM

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mariarrt
Posts: 1
Joined: Fri Sep 08, 2017 1:03 pm

Help GMM

Postby mariarrt » Mon Sep 11, 2017 11:35 am

I am currently working on my thesis and I am using EViews 9 but it is my first time using it, I have two questions and I hope you could answer me.
I am trying to measure the impact of ICT(information and communications technologies) on economic growth, there is a big problem of reversed causality and many authors use the GMM for that reason.
I have a data set of the 32 states in Mexico from 2000 to 2015, I am making the analysis using the GMM in the full sample (T=15, N=32), but I want to do it with 3 sub-samples per income group, that is the first question. How do I make those groups in EViews in order to do the same regression for all groups, I have a variable called income that is 1 low 2 middle 3 high maybe I could use that.
The other thing is, when I make the sample into income groups I have T= 15 and N1= 9, N2= 11, N3= 12, I read that the GMM needs a bigger N that T or it could lead to inconsistent results.
In that case would it be better to use de Pooled Mean Group? if so I come back to my earlier question, how can I divide the full sample into 3 subsamples according to their income.
Thank you very much

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