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Running a GMM Estimation on dynamic Panel Model using plm-Package

2 messages · bstudent, Jan Schulz

#
Hello,

although I searched for a solution related to my problem I didn?t find one,
yet. My skills in R aren?t very large, however.
For my Diploma thesis I need to run a GMM estimation on a dynamic panel
model using the "pgmm" - function in the plm-Package.

The model I want to estimate is: "Y(t) = Y(t-1) + X1(t) + X2(t) + X3(t)" .

There are no "normal" instruments in this model. There just should be the
"gmm-instruments" I need for the model.
In order to estimate it, I tried the following code:
I tried "Model" as "Modelp <- pdata.frame(..." and as "Model <-
read.table(..." but in both cases there?s an error-massage:

Error in solve.default(Reduce("+", A2)) : 
  System ist f?r den Rechner singul?r: reziproke Konditionszahl =
4.08048e-22

Error in solve.default(Reduce("+", A2)) : 
  System is singulary for the computer: reciprocal number of conditions =
4.08048e-22


I really can?t help myself since the standard plm-estimations "within" or
"first difference" are working well.

I hope you understood what I?m trying to do and my description is adequate.

Thank you very much!!!!!

Kind regards.

bStudent


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#
Hi!

Am 12.06.2011 21:43, schrieb bstudent:
Just for the record: I had the same error with my data and finaly gave 
up and used stata.

Kind regards and good luck!

Jan