The model is attached.
This model is special as it includes macro environment variables (FB and X) which are individual invariant.
My professor said that this model specification won't work in the PD settings.
I have checked many paper in related literature that use the same model as mine, and fixed effects or/and GMM method are used to estimate the model.
So I wonder whether it is valid to apply fixed effects and the system GMM method as this model is not strictly panel data model.
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