Dear users,
I have a panel dataset composed of 28 countries (EU-28) for 20 years (1995-2015). I have government expenditure as dependent variable and several country-specific political characteristics as independent variables. I am wondering what is the best model I should use. I expect my dependent variable depends on its own past values, so as I would like to include lagged values of y in the regression. I think at dynamic panel models such as system-gmm, but I know that n>>t. Alternatively, I think at gls. Also, what about country and year fixed efffects?
Thanks!
I have a panel dataset composed of 28 countries (EU-28) for 20 years (1995-2015). I have government expenditure as dependent variable and several country-specific political characteristics as independent variables. I am wondering what is the best model I should use. I expect my dependent variable depends on its own past values, so as I would like to include lagged values of y in the regression. I think at dynamic panel models such as system-gmm, but I know that n>>t. Alternatively, I think at gls. Also, what about country and year fixed efffects?
Thanks!
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