System GMM

System GMM (Generalized Method of Moments) is a statistical technique used to analyze data collected over time (panel data) to understand relationships between variables, especially when those variables influence each other or are affected by past values. It helps address issues like unobserved factors and measurement errors, providing more reliable estimates. By combining different types of equations and using internal instruments, System GMM improves the accuracy of results in dynamic models, making it valuable for studying economic, social, or business phenomena over time.