The RATS Software Forum

ABLAGS is a standard RATS procedure. If you're running this on Cornell's network, you might want to check where they installed the procedures. I was able to figure this part out, thanks. Now I'm struggling with what to put in the A-B instruments section vs. in the 2SLS section. Why is your capital ...

Two more questions. In the original paper, the authors talk about "partial differencing", which is equivalent to simple differencing if the coefficients on the firm effect remain unchanged. Does the code you posted assume that, or is there some partial differencing going on behind the scen...

Thanks Tom. If I use the second, hetersked...consistent 2SLS, I probably need to add the "define=" code to the linreg statement, right?

This does single equation estimates using 2SLS, 2SLS with heteroscedasticity robust standard errors and joint estimation using 3SLS, all with the Arellano-Bond sets of instruments. Tom: Do I need to leave in both 2SLS estimates, or do I choose only 1 for my final code? And when I run the code, I ge...

TomDoan wrote:There's nothing about the way that this works that requires a balanced sample.

I guess I was thrown by the line "calendar(panelobs=8) 1973". Does this imply that every "firm" begins in 1973 and runs for exactly 8 years?

Hi Tom. Thanks so much for posting an example from Holtz-Eakin et al. I am relatively new to RATS, and am wondering how I would alter your code to accommodate an unbalanced panel with missing observations? Think 10,000 firms, 30 years of annual obs, and differing start/end dates per firm with not al...