HI everyone!!
I Have a question, and maybe some of you know. I want to replícate the paper of Arellano (2008) the thing is that i need to compute the moments that appear in her paper, particularly the variance of the spread and the correlation with the income, do you know how to do it?
Marta,
Once you solve the model, you can calculate for the country interest rate spread as given at the end of page 694 of Arellano (2008). After that, it is trivial to calculate the moments.
Best,
Hasan