research
Long Run and Short Effects in Static Panel Models
- Publication date
- Publisher
Abstract
For short and fat panels the Mundlak model can be viewed as an approximation of a general dynamic autoregressive distributed lag model. We give an exact interpretation of short run and long effects and provide simulations to assess the quality of the approximation of the long run and short run effects by the parameters of the Mundlak Model.Random Effects Models, Mundlak Model, Panel Econometrics