Frequency mismatch between instrumental variable (z) and endogenous variable (x) in panel fixed effects regression

[Mohsin Tunio]

Frequency mismatch between instrumental variable (z) and endogenous variable (x) in panel fixed effects regression

Hi,

How can we instrument a variable that is available at lower frequency with the one at higher frequency in fixed effects panel regression. For example, in my case my instrument is available at annual frequency while the explanatory variable is available at quarterly frequency.

Thanks in anticipation!

Regards,

Mohsin