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My question I have panel data and I want to lag only the explanatory variables I need to explain theoretically why some papers used one
My question I have panel data and I want to lag only the explanatory variables I need to explain theoretically why some papers used one lag to avoid endogenity problems? And when I can use more than one lag if my coefficients are heterogeneous? What are the differences between two cases and how I can decide to choose one or more than one lags
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