Any knowledge on cross equation error correlation?

Muhammad Naveed Tahir @Muhammad-Tahir-22

02 May 2014 0 6K Report

If one estimates equations simultaneously through GMM (time series data for single country) and one suspects that errors of one equation may be correlated with the errors of other equations. Can one estimate through GMM? That is, does GMM take contemporaneous error correlation across equations into account?

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Science method

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