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by Daniel
Mon Nov 09, 2009 11:19 am
Forum: Econometric Discussions
Topic: Fixed effects in GMM estimation
Replies: 1
Views: 3165

Re: Fixed effects in GMM estimation

Oh, and one additional question (for now): if I deal with FE dummy in a regression, how should I properly test for endogeneity and further on if tests confirms it, what then?
by Daniel
Mon Nov 09, 2009 7:23 am
Forum: Econometric Discussions
Topic: Fixed effects in GMM estimation
Replies: 1
Views: 3165

Fixed effects in GMM estimation

Dear all, I am having trouble understanding what happens to fixed effects in GMM estimation. To be more precise, using two approaches: i. equation in differences (IV in levels) - by definition eliminates fixed effects; ii. equation in levels (IV in differences) - what then with FE? Do I need FE dumm...

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