GMM/DPD
Posted: Tue Jul 21, 2015 3:29 pm
Hello,
I am doing a master thesis about the factors that have influence on the VAT Rate in EU.
My workfile is composed by 16 variables (like gdp_per_capita; government_spendings; social_contributions; unemployment), 27 countries and 8 years. My dependent variable is VAT Rate (% which changes some of the years and for some countries, as for few others is always the same during those 8 years).
I went to Structure/Resize and set it as Dated Panel and used "Country" as Cross Section ID and "Year" as Date Series.
My problem is when it comes to Estimate the Equation. The method I choose is GMM/DPD but I do not really know what I should do on the Panel Options. Which effects specification, Weights and coef covariance method should I choose? Any suggestion?
My purpose is really to understand which explanatory variables are statistically significant to explain the VAT Rate as a whole (all the 27 countries) and to find the best possible model.
I have been many hours without sleeping because of this as I do not really find many examples.
Thank you very much! :D
I am doing a master thesis about the factors that have influence on the VAT Rate in EU.
My workfile is composed by 16 variables (like gdp_per_capita; government_spendings; social_contributions; unemployment), 27 countries and 8 years. My dependent variable is VAT Rate (% which changes some of the years and for some countries, as for few others is always the same during those 8 years).
I went to Structure/Resize and set it as Dated Panel and used "Country" as Cross Section ID and "Year" as Date Series.
My problem is when it comes to Estimate the Equation. The method I choose is GMM/DPD but I do not really know what I should do on the Panel Options. Which effects specification, Weights and coef covariance method should I choose? Any suggestion?
My purpose is really to understand which explanatory variables are statistically significant to explain the VAT Rate as a whole (all the 27 countries) and to find the best possible model.
I have been many hours without sleeping because of this as I do not really find many examples.
Thank you very much! :D
