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Instrumental variables and GMM: Estimation and Testing
4 Instrumental variables and GMM: Estimation and testing where m indicates an intra{cluster covariance matrix. For cluster mwith tobserva-tions, mwill be t t. Zero covariance between observations in the M di erent clusters gives the covariance matrix , in this case, a block{diagonal form.
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EC 823: Applied Econometrics - fmwww.bc.edu
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