Why do most people use GMM in analysis that focus on Africa?

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Raffaele Mattera

The estimation technique depends on the model used in the empirical analysis. GMM estimation is used for dealing with dynamic specifications or in the more general setting with some endogenous variables.

Chuck A Arize

Most people use Generalized Method of Moments (GMM) in analyses focusing on Africa due to its flexibility in handling issues such as endogeneity, measurement error, and weak instruments, which are common challenges in African datasets.

Many people use Generalized Method of Moments (GMM) in analyses focusing on Africa due to its ability to handle complex data structures, heterogeneity, and potential endogeneity issues prevalent in African economic and social contexts.