Dear all,
I am using xtabond2 to estimate my model. Although the coefficent of interest variable is significant, the first lag of dependent variable is not siginificant. I also try deeper lags but no one is significant. From my understanding, if the lagged dependent variables are not significant, the model is static and then fixed-effect and IV approach should be used to address endogeneity. Am I right?
Thank you very much in advance.
I am using xtabond2 to estimate my model. Although the coefficent of interest variable is significant, the first lag of dependent variable is not siginificant. I also try deeper lags but no one is significant. From my understanding, if the lagged dependent variables are not significant, the model is static and then fixed-effect and IV approach should be used to address endogeneity. Am I right?
Thank you very much in advance.
