log using dyn_panel_example.log, replace

clear
set memory 40m
set more off

set matsize 350

use "al_tax_std_updated.dta", clear
tsset state year

** Anderson-Hsiao FD with IV = y(t-2)

xtivreg lnallgon lnallgonlag percinc percisq  maxafdc teenperc (l.lnallgon = l2.lnallgon), i(state) fd


** Arellano & Bond One Step: maxlags = all 

xtabond lnallgon  percinc percisq  maxafdc teenperc, lags(1)


** Arellano & Bond Two Step: maxlags = all

xtabond lnallgon  percinc percisq  maxafdc teenperc, lags(1) twostep