We know that GMM estimator is efficient estimation techniques for dealing with endogeneity but can we used this estimation for study model having mediating variables. I have recent come across article which employed Fixed Effect using three step procedure by estimating three equation. One for direct causal relationship (DV with IV), Second with DV and MV and third DV with both IV and MV.
DV= Dependent variable
IV=Independent Variable
MV= Mediating variables
Can we employ GMM by following same procedure?
Dear Rashid,
You can use GMM to estimate the mediation effect. However, you need to be aware that your data are not short on the time dimension. Usually, GMM requires a longer period of time for better estimation. In the presence of heteroskedasticity, GMM is a suitable method for efficient estimation.
Regards,
Md. Ali Rasel.
Thank All. I have found the article that used the same.
http://onlinelibrary.wiley.com/doi/10.1111/auar.12075/pdf
Please i want to know what data analysis techniques can be used for moderation. Can GMM be used? What other analysis methods or technique can be used for a moderation.
Rashid Zaman, please! can I have the downloaded copy of the article through [email protected]. I am currently working on a paper of the same method. Thank you.
- Badges
- Science method
- Similar topics
- Mathematics
- Statistics
- Statistical Techniques
- Structural Equation Modeling