xtabond cheat sheet
12 November 2015
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Random-effects and fixed-effects panel-data models do not allow me to use observable information of previous periods in my model. They are static. Dynamic panel-data models use current and past information. For instance, I may model current health outcomes as a function of health outcomes in the past— a sensible modeling assumption— and of past observable and unobservable characteristics.
Today I will provide information that will help you interpret the estimation and postestimation results from Stata’s Arellano–Bond estimator xtabond, the most common linear dynamic panel-data estimator. Read more…