GMMmenetelmiä
GMMmenetelmiä refers to a set of statistical methods collectively known as Generalized Method of Moments (GMM). This econometric framework is widely used for estimating parameters in statistical models when the traditional assumption of independent and identically distributed (i.i.d.) errors is violated, or when the model is not fully specified. GMM is particularly useful in situations involving endogeneity, where independent variables are correlated with the error term.
The core idea behind GMM is to use a set of moment conditions. These are equations that
GMM offers a flexible approach to estimation. It does not require the full specification of the data-generating