partial adjustment model

[kalyani khan]

Sorry if I am posting irrelevant question here.
1. I am trying to find way to apply partial adjustment model. Can it work for two values lev and lag(lev) as defined in equation 3 of the attached jpeg. any explanation from other sources
would be appreciated.
2. Is there anyway in stata which lead me to estimate equation 5 for each firm for each year. Sorry I don't know much in this regard. Previously I have learned only OLS estimates.

[Carlo Lazzaro]

Kalyani:
q1) see -D.- notation under -help tsvarlist-;
q2) you may want to try:

bysort idfirm year: regress <depvar> <indepvars>

[kalyani khan]

Lazzaro:
So It mean I just need to do lev-lag(lev) as the one I understand from your suggested help. So what is the meaning of partial adjustment here?

Kalyani:
q1) see -D.- notation under -help tsvarlist-;

[Carlo Lazzaro]

Kalyani:
There's probably an issue concernig the -lambda- value, but it falls outside my knowledge.

[kalyani khan]

Is there anyone else who can suggest something about partial adjustment model and -lambda- value.

[kalyani khan]

What to add in this regression for applying firm fixed effect?

Kalyani:

bysort idfirm year: regress <depvar> <indepvars>

[Carlo Lazzaro]

Kalyani:
try:

bysort idfirm year: regress <depvar> <indepvars> i.idfirm

but you will probably see that -i-idfirm- will be omitted due to collinearity (or you may even end up with an error message saying "insufficient observation").