Using Kripfganz (2016) xtdpdqml command in Stata, replicate his illustration using the Arellano and Bond (1991) dynamic employment empirical application in Problem 8.8. Unlike the original study, the dynamics is restricted to one lag on the dependent variable while Arellano and Bond (1991) used two lags, and there are no distributed lag on the exogenous variables when Arellano and Bond (1991) used up to two lags. The illustration also omits the industry output variable arguing that Arellano and Bond (1991) found it insignificant. This applies QML of Hsiao, Pesaran and Tahmiscioglu (2002) as an alternative to the GMM estimator of Arellano and Bond (1991).