Regression modelEconometrics / time series

Time-Varying Parameter Arellano-Bond GMM

The time-varying parameter Arellano-Bond GMM (TVP-AB GMM) is a dynamic panel estimator that extends the classic Arellano-Bond difference GMM framework by allowing regression coefficients to evolve over time. It addresses both individual fixed effects and the endogeneity of lagged dependent variables, while accommodating structural change and parameter instability across the sample period.

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Sources

  1. Arellano, M., & Bond, S. (1991). Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations. The Review of Economic Studies, 58(2), 277-297. DOI: 10.2307/2297968
  2. Canova, F., & Ciccarelli, M. (2009). Estimating Multicountry VAR Models. International Economic Review, 50(3), 929-959. DOI: 10.1111/j.1468-2354.2009.00549.x

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Referenced by

ScholarGateTime-varying parameter Arellano-Bond GMM (Time-Varying Parameter Arellano-Bond Generalized Method of Moments Estimator). Retrieved 2026-06-04 from https://scholargate.app/en/econometrics/time-varying-parameter-arellano-bond-gmm