hi i am running a panel ardl model for n= 5 , my optimal lag length was 2 for the dependent variable which is (net )
the independent variables lags: 0 lags for gdp, 0 lags for un 2 lags for pop 2 lags for gcf 0 lags for fdi
my first question is : why do we put the letter l which means lag before the dependent variable in the long run section always i noticed in all commands no matter what the lags are ? the part must be giving us the long run estimates so why do we include lags aren't lags supposed to be only in the short run part?
my second question is that the command will be in my case:
xtpmg d(1/2).net d.gdp d(1/2).capita d.un d.fdi d(1/2).pop, lr(l.net gdp capita un fdi pop) ec(ec) replace pmg
is the command right?and in the results i get the lags 1 and 2 for the variables that have 2 lags but for my dependent variable that will be also taken in the short run part i get only the lag 2 for it without lag one why?
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