Tag Archives: laggged dependent variable

Fixed effects and lagged dependent variables again

chaos6174 asks: In section 5.3 Fixed Effects versus Lagged Dependent Variables,you write that the fixed effect model can deal with the OVB problem caused time-invariant or group-invariant omitted variables,and also give some suggestions on the strategies handing the OVB problem caused by potential omitted variables that may change over time in practice.On whether to employ […]
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