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Reliable Inference for GMM Estimators? Finite Sample Properties of Alternative Test Procedures in Linear Panel Data Models.

Abstract:

We compare the finite sample performance of a range of tests of linear restrictions for linear panel data models estimated using the generalized method of moments (GMM). These include standard asymptotic Wald tests based on one-step and two-step GMM estimators; two bootstrapped versions of these Wald tests; a version of the two-step Wald test that uses a finite sample corrected estimate of the variance of the two-step GMM estimator; the LM test; and three criterion-based tests that have recen...

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Publisher copy:
10.1081/ETC-200049126
Publisher:
Taylor&Francis
Journal:
Econometric Reviews
Volume:
24
Issue:
1
Pages:
1 - 37
Publication date:
2005-01-01
DOI:
ISSN:
0747-4938
Language:
English
UUID:
uuid:0772d6f6-c4ea-4a4a-a517-b4ed734a459b
Local pid:
oai:economics.ouls.ox.ac.uk:12559
Deposit date:
2011-08-15

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