Hello everyone!
I am currently investigating panel data and my research model includes lagged variables (1 year and 2 year lag) as well as an interaction effect.
My dependent variable patents hereby should be explained by Numberofmergers, one, and two years prior the observations of the patents, respectively. Also i want to control for the variable ln_emp as well as for the dummy variables YearEffective and AcquirorPrimarySICCode.
I am unsure as to where to use the lagged variables. Would I lag the controls twice as well? and would it make sense to lag both interaction terms?
Does anyone have suggestions for a reasonable regression model?
these are some of my thoughts:
a. Every Variable lagged twice
xtpoisson patents cl.ln_xrdintensity##cl.Numberofmergers cl2.ln_xrdintensity##cl2.Numberofmergers l.ln_emp l2.ln_emp i.YearEffective i. AcquirorPrimarySICCode
b. Both interaction terms lagged twice, but control variable "ln_emp" not lagged
xtpoisson patents cl.ln_xrdintensity##cl.Numberofmergers cl2.ln_xrdintensity##cl2.Numberofmergers ln_emp i.YearEffective i. AcquirorPrimarySICCode
c. Only "Numberofmergers" lagged twice, all other variables not lagged
xtpoisson patents c.ln_xrdintensity##cl.Numberofmergers c.ln_xrdintensity##cl2.Numberofmergers l.ln_emp l2.ln_emp i.YearEffective i. AcquirorPrimarySICCode
Maybe someone can help me out on this one.
Best regards
Christopher
I am currently investigating panel data and my research model includes lagged variables (1 year and 2 year lag) as well as an interaction effect.
My dependent variable patents hereby should be explained by Numberofmergers, one, and two years prior the observations of the patents, respectively. Also i want to control for the variable ln_emp as well as for the dummy variables YearEffective and AcquirorPrimarySICCode.
I am unsure as to where to use the lagged variables. Would I lag the controls twice as well? and would it make sense to lag both interaction terms?
Does anyone have suggestions for a reasonable regression model?
these are some of my thoughts:
a. Every Variable lagged twice
xtpoisson patents cl.ln_xrdintensity##cl.Numberofmergers cl2.ln_xrdintensity##cl2.Numberofmergers l.ln_emp l2.ln_emp i.YearEffective i. AcquirorPrimarySICCode
b. Both interaction terms lagged twice, but control variable "ln_emp" not lagged
xtpoisson patents cl.ln_xrdintensity##cl.Numberofmergers cl2.ln_xrdintensity##cl2.Numberofmergers ln_emp i.YearEffective i. AcquirorPrimarySICCode
c. Only "Numberofmergers" lagged twice, all other variables not lagged
xtpoisson patents c.ln_xrdintensity##cl.Numberofmergers c.ln_xrdintensity##cl2.Numberofmergers l.ln_emp l2.ln_emp i.YearEffective i. AcquirorPrimarySICCode
Maybe someone can help me out on this one.
Best regards
Christopher
