Dear Stata members,
I have a question about using lag of independent variables in my panel data model.
This is the panel model I will use: Yit=a + b*Xit-1 + c*Zit-1+uit
According to the theoretical model I need to take one lag of independent variables. Because of not taking lag of dependent variable (Yit), I will not use GMM or ARDL model.
Can I use static panel data model (POLS, FE, RE) to predict this model? Is there any problem if I use static panel data model?
Thank you very much.
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