Read stability, lag effects, and GMM diagnostics as one system.

OPTIONAL ADVANCED EXTENSION — This mission is outside the assessed FIN4401 core. Every panel, coefficient, standard error, and diagnostic is synthetic and designed only for learning dynamic GMM interpretation.

MISSION OBJECTIVES

Trace how lag creation changes a short-panel estimation sample.
Explain dynamic-panel bias and distinguish difference from system GMM.
Assess lagged-outcome persistence and the dynamic stability condition.
Interpret Arellano–Bond AR(1)/AR(2) and Sargan/Hansen evidence with appropriate limits.
Compare restricted and proliferated instrument designs using synthetic EViews and Stata workflows.