Whenever the lagged dependent variable appears as an explanatory variable, the R 2 is usually much higher
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Whenever the lagged dependent variable appears as an explanatory variable, the R2 is usually much higher than when it is not included. What are the reasons for this observation?
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The lagged term represents t...View the full answer
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Whenever the lagged dependent variable appears as an explanatory variable, the R 2 is usually much higher than when it is not included. What are the reasons for this observation?
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