The generalized method of moments (GMM) is a method for constructing estimators, analogous to maximum likelihood (ML). ... GMM generalizes the method of moments (MM) by allowing the number of moment conditions to be greater than the number of parameters. Using these extra moment conditions makes GMM more efficient than MM.
The System GMM estimator improves substantially the estimate of the impact of education on growth relative to the models which focus on within-country changes in education, adding information on cross-country variation in education levels.
The System GMM estimator improves substantially the estimate of the impact of education on growth relative to the models which focus on within-country changes in education, adding information on cross-country variation in education levels.
GMM generalizes the method of moments (MM) by allowing the number of moment conditions to be greater than the number of parameters. Using these extra moment conditions makes GMM more efficient than MM. https://blog.stata.com/2015/12/03/understanding-the-generalized-method-of-moments-gmm-a-simple-example/
The System GMM estimator improves substantially the estimate of the impact of education on growth relative to the models which focus on within-country changes in education, adding information on cross-country variation in education levels.